SANTA MONICA, August 16, 2016 – Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC), announced it acted as sole lead arranger and book runner on a $100 million senior secured credit facility that will be used for the acquisition of Performance Bicycle by Advanced Sports, one of the leading bicycle manufacturers and distributors in the world.
“We are very excited to be working with another iconic brand, Wells Fargo, to provide us with the liquidity we need to run our business and build upon our own brand and business momentum,” said Patrick J. Cunnane, CEO of Advanced Sports Enterprises. “This new credit facility is a significant step forward for our company, providing us with great resources as well as greater flexibility which will assist us in continuing to enable our strategies for profitable business growth.”
The acquisition of Performance Bicycle, the U.S.’s number-one specialty bicycle retailer, creates a dynamic and well-positioned bicycle business that is poised to take advantage of the new ways consumers are shopping for bikes. The new company, called Advanced Sports Enterprises, is home to 10 leading brands well-known to the industry and highly regarded by cyclists, including bike brands Fuji, SE, Kestrel, Breezer, and Phat; retail brands Performance and Nashbar; and components, parts and accessories brands Oval Concepts, Forte and Spin Doctor.
“We are very pleased to have been able to complete such important financing that will allow Advanced Sports and Performance Bicycle the financial flexibility to make strategic business decisions,” said Keith Vercauteren, head of the Retail Finance division at Wells Fargo Capital Finance. “It’s important to Wells Fargo Capital Finance to support leading retailers that consumers value. We look forward to supporting this new business and new business model as they continue to grow.”