Falconhead Capital Acquires Three Endurance Sport Companies, Forms Major Endurance-Sport Event and Publishing Platform
NEW YORK & SAN DIEGO--(Business Wire)--Falconhead Capital, LLC, a private equity firm specializing in
investments in sports, leisure, lifestyle, and media focused
businesses, today announced that it has simultaneously acquired three
separate enterprises in the endurance sport event and publishing
industries and combined them to form a major new platform company,
which will be known as Competitor Group, Inc. ("CGI" or the
"Company").
At inception, CGI is the largest media and event based enterprise
in the endurance sport space, with total monthly magazine circulation
of approximately 500,000; marathons, triathlons, cycling and other
endurance events in sixteen major cities with more than 150,000
participants; and a unique opportunity to leverage its media and event
assets into a major global enterprise. Additionally, CGI boasts the
preeminent new media platform in the sector.
The three acquired companies, all of which are based in San Diego,
Calif., the endurance-sport capital of the world, are Elite Racing,
Inc. ("Elite"); La Jolla Holding Group LLC, doing business as
Triathlete Magazine ("Triathlete"); and Competitor Publishing, Inc.
("Competitor Publishing").
As a result of the transactions, financial terms of which were not
disclosed, Competitor Group, Inc. is now the largest media and event
business exclusively focused on the endurance sport
industry--principally including running, cycling and triathlons--a
rapidly growing, $1.3 billion industry with more than 3.4 million
active participants nationwide, most in the attractive 25 to 54 years
old demographic, and with an average household annual income
consistently in the $75,000 to $95,000 range.
Elite Racing is the largest owner and operator of running events
in the United States, with eight events across the country. Currently
slated events for 2008 include races in San Diego, San Jose and
Carlsbad, Calif.; Phoenix, Ariz.; San Antonio, Tex.; Nashville, Tenn.;
Virginia Beach, Va.; and Philadelphia, Pa. Elite is a diversified
business with several income sources including, among others,
participant entry fees, sponsorship, TV, merchandise, and fitness
expos.
Triathlete is the largest triathlon consumer magazine and online
content provider in the industry, with total monthly circulation per
issue of about 60,000.
Competitor Publishing publishes regional magazines with controlled
monthly circulation totaling about 450,000. The magazines are a major
resource for endurance events, training tips, nutrition and products.
Competitor Publishing also owns the Muddy Buddy endurance events,
which take place across the country and feature two-person teams
competing in a bike/run relay over six- to seven-mile courses.
Featured events for 2008 will take place in San Jose and Los Angeles,
Calif.; Boulder, Co.; Chicago, Ill.; Richmond, Va.; Atlanta, Ga.;
Orlando, Fla.; and Austin, Tex.
David S. Moross, chairman and chief executive officer of
Falconhead Capital, said: "This deal is enormously exciting for
Falconhead and transformative for the endurance sport industry. It is
consistent with our strategy, which has long focused on investments in
sports, leisure, lifestyle and media related businesses.
"It creates, at inception, the nation's leading media and event
company focused on the passionate and upscale amateur participants in
endurance sports, a fast-growing industry in which, for example,
triathlon participation has been growing 23 percent annually over the
past five years.
"Also at inception, CGI owns and operates endurance and fitness
events in 16 major cities with more than 150,000 annual participants;
consumer magazines with about 500,000 total monthly circulation;
specialty publications such as race programs, buyer's guides, and
endurance events books; multiple leading websites; and a weekly radio
show.
"In short, the formation of Competitor Group, Inc. represents a
significant opportunity for Falconhead to leverage CGI's current
assets into the number-one online destination/community for endurance
athletes, incorporating authoritative 'insider' content, race results,
merchandise and streaming video, as well as such growth areas as
advertising and sponsorship revenue through the creation of an
integrated CGI sales force; and to further expand CGI's national
footprint both organically and through further acquisitions," Mr.
Moross said.
To lead CGI's management team and drive the rapid implementation
of its business and growth strategy, Falconhead has named one of its
senior operating executives, Peter Englehart, chief executive officer
of CGI, effective immediately. Mr. Englehart, 55, who will shortly be
moving to CGI's headquarters in San Diego, has been a Falconhead
operating partner for the past three years. He was previously founder
and president of the Convention & Trade Show Television Network, LLC
(CTS-TV); senior vice president of programming and production for the
Outdoor Life Network (OLN); and director of program planning at ESPN.
"Peter's extensive experience, knowledge and relationships in the
endurance sport industry and related media will be tremendously useful
in helping CGI execute its business plan and growth strategy," Mr.
Moross said.
Falconhead Capital, LLC (www.falconheadcapital.com), with $500
million of assets under management, is a private equity firm
established in 1998 to provide investors with significant long-term
capital appreciation by investing globally in consumer-focused
businesses in the sport, leisure, lifestyle, recreation and related
consumer categories. In addition to Competitor Group, Inc., Falconhead
Capital's current portfolio investments include Extreme Fitness, Inc.,
Our365 (formerly Growing Family), Escort, Inc., and Premier, Inc. Past
Falconhead portfolio investments including, among others, National
Powersport Auctions, Maritime Telecommunications Network, The Golf
Warehouse, and ESPN Classic Europe, LLC.
Kekst and Company
Roy Winnick, 212-521-4842
or
Mark Semer, 212-521-4802
Copyright Business Wire 2008
