FOR IMMEDIATE RELEASE
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.
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