EDELBROCK GOING PRIVATE
Edelbrock Corporation stockholders have approved the proposed merger of the company with a subsidiary of a corporation controlled by O. Victor Edelbrock Jr. and his affiliates. O. Victor Edelbrock Jr. is Edelbrock’s chairman, president and CEO.
As a result of the merger, Edelbrock will become a privately-held company and stockholders will receive $16.75 in cash for each share of common stock they own
Founded in 1938 and based in Torrance, Calif., Edelbrock designs, manufactures and distributes performance replacement parts for the automotive and motorcycle aftermarkets. In addition to three production facilities and an automated distribution center in Torrance, Edelbrock owns and operates an aluminum foundry and a motorcycle carburetor division in San Jacinto, Calif.
TRIUMPH REPORTS RECORD REVENUE
Privately owned Triumph Motorcycles, Ltd. says sales have increased more than 30% during the first six months of the current fiscal year, but did not provide specific figures. Saying that it expects sales to continue at record levels, the company says it has plans to increase overall production for the next financial year by more than 25%.
Triumph worldwide revenues for the year ended June 20, 2004, rose by 14% from $211 million to $240 million. The company said operating profit before interest and taxes was $2.8 million.
Two years ago, Triumph had a serious factory fire at its main United Kingdom facility that disrupted production for six months. This contributed to a loss, before interest and tax, of $8.5 million for the year ended on June 30, 2003. The 2004 results reflect a full recovery from the fire.
Bloor Holdings Limited owns the Triumph Group. Bloor Holdings is a closely held private company with net assets of $517 million.
Triumph motorcycles are distributed in the United States by Triumph Motorcycles (America), Ltd., Newnan, Ga.
DUCATI TO POST LOSS
Ducati Motor Holdings Chief Executive Federico Minoli says the company’s fourth quarter performance was as expected and confirmed the full-year forecast of a post-tax loss of about $7.8 million and a 5% drop in unit sales.
Ducati cut its 2004 earnings forecast in November after heavy losses in the third quarter due to a weak dollar (about 20% of Ducati1s unit sales are in North America), a delay in the launch of the Monster S2R and 999 models, and a general drop in unit sales.
In a recent interview with Reuters, Minoli said Ducati needed $131 million - $157.2 million this year to refinance debt, including about $52.4 million in outstanding bonds.
Responding to persistent rumors, Minoli said he was not aware whether or not U.S.-based private equity firm Texas Pacific Group wanted to sell its 33% stake in the motorcycle manufacturer.
VIPER SELECTS SOFTWARE PROVIDER
Viper Motorcycle Company, Minneapolis, has selected a software system with which to manage its business and manufacturing system.
Fourth Shift Edition for SAP Business One, a joint product from SAP and SoftBrands, Inc., is tailored for small and midsize manufacturers.
SoftBrands Inc., Minneapolis, provides manufacturing solutions for small to medium-sized businesses. Serving 5,000 customers in 60 countries, the company has more than 500 employees and branch offices in Europe, Asia, Australia, the Middle East and Africa. Visit www.softbrands.com for more information.
KAWI CANADA SIGNS WITH GE FINANCE
GE Consumer Finance, a provider of financial services to consumers and retailers in 41 countries, has launched a consumer finance program with Canadian Kawasaki Motors.
The exclusive three-year agreement will allow Kawasaki dealers in Canada to offer special credit promotions and long-term financing to consumers through a new program called Kawasaki Motors Retail Finance. The new program will enable approximately 200 dealers from Newfoundland to British Columbia to offer special financing terms to consumers, including $99-a-month financing on selected products. Consumers also will be able to choose from among a number of no-payment and low-interest rate programs.
More information about GE Consumer Finance can be found online at www.geconsumerfinance.com.
BAD TOYS SIGNS WITH GAMBLER
Bad Toys Holdings, Inc. (BTOI), a Nevada company engaged in the business of manufacturing and selling custom V-Twin motorcycles, custom street rods and providing brokerage service to custom, classic cars, and motorcycle owners, announced it has signed an agreement to acquire 100% of Gambler Motorcycle Company, Inc.
Gambler has more than 20 years of experience in the design and manufacturing of frames and custom specialty racing parts. Gambler motorcycle frames are manufactured from 4130-chromolly tubing and certified aircraft aluminum billet pieces.
For more information, visit www.gamblermotorcycles.com or www.badtoys.net.
BRP SIGNS SEVEN-YEAR DEAL WITH DELL
Bombardier Recreational Products (BRP) has signed a seven-year contract with Dell, Inc. for the purchase of products with which to run its global IT network. The contract includes Dell servers, storage, desktops, notebooks, workstations and printers for approximately 5,200 systems, plus a suite of professional and managed services for multiple BRP locations worldwide. Professional services offered include application packaging, server and storage consolidation, active directory and exchange services. Terms of the contract were not revealed.
The first phase of the contract is underway in Canada, the United States and parts of Europe.
NMDA, WHOLESALE TRADER SIGN AGREEMENT
MBA Holdings, Inc. has signed an agreement with WholesaleTrader.com to cross market their respective organizations for the purposes of recruiting new members to MBA's subsidiary, the National Motorcycle Dealers Association (NMDA), and WholesaleTrader.com.
WholesaleTrader.com is a virtual marketplace providing approximately 400 dealers with a way to match buyers and sellers of new and used motorcycle inventories on the Internet.
On a reciprocal basis, the NMDA will also actively recruit new members for WholesaleTrader.com.As part of the agreement, the NMDA has agreed to represent WholesaleTrader.com at all future industry trade shows attended by the NMDA. For more information visit NMDA at the Dealer Expo in Indianapolis, Booth #5830.
GIANT MOTORSPORT INCREASES SALES
Giant Motorsports, Inc. (GMOS), a dealer group based in Salem, Ohio, reported unaudited sales of $26.3 million for the third quarter, up from $12.7 million for the same quarter in 2003, and earnings before taxes rose to $529,236, compared to $199,204 in 2003, for a gain of 166% for the third quarter 2004.
Greg Haehn, president of Giant Motorsports, said the company expects to generate $100 million in revenues this year. Giant Motorsports employs a "big-box" business model proven successful in other industries.