Performance

With 80 retail stores in 15 states, two catalogs and two e-commerce websites, Performance, Inc. is the largest independent bicycle dealer and direct marketer of bicycles and cycling accessories in the United States. Performance has thrived on its ability to anticipate and successfully meet customer needs, earning the company a national reputation for offering the broadest selection of branded bicycles, parts, accessories, and technical apparel at attractive "Everyday Value" pricing. Performance takes pride in having every product a customer needs to ride or race a road, mountain, comfort or children's bicycle.

As the leading private equity firm focused on consumer businesses that benefit from Healthy Living and Aging trends, North Castle identified Performance as an attractive investment opportunity in the high-growth U.S. cycling industry. Benefiting from a growing interest in health and fitness, the U.S. cycling industry reached $6.0 billion in annual retail sales in 2005. According to the National Sporting Goods Association, this large and steadily growing market has been historically insulated from macroeconomic downturns while generating a compound annual growth rate of 3.5% since 1990.

Additionally, over 40% of U.S. adults, approximately 87 million Americans, currently ride bicycles, meaning there are more bicyclists in the U.S. than skiers, golfers, and tennis players combined. Approximately 40.3 million Americans are considered "active" cyclists, defined as those riding at least once per week and an estimated 8.0 million Americans are considered "enthusiast" cyclists, defined as those riding multiple times per week.

Performance is similar to other North Castle investments in that it operates in a highly fragmented industry that is benefiting from growing consumer interest in health and fitness. The combination of a strong management team, the involvement of North Castle's Operating Advisors, and our general knowledge and experience that has come from building other successful retail businesses, such as Equinox and Red Door, provides the foundation for Performance to continue its success as the retail leader in the cycling industry. Additionally, Performance will gain additional competitive advantages as North Castle continues to builds the firm's expertise in its Fitness and Recreation industry vertical. North Castle currently holds an investment in Octane Fitness Holdings, Inc., a leading designer and distributor of premium low-impact cardio fitness equipment and previously owned Equinox Fitness Holdings, a leading operator of upscale fitness clubs, which it sold to The Related Group in 2006.

Website
www.performancebike.com