Executives of Lemco Management Co., the Denver-based powersports dealer training company, have reached an agreement in principle to sell the company to Ride Now Powersports Management Group, one of the largest powersports dealer groups in the United States, Powersports Business has learned.
Negotiations have been going on for several months, and the sale is expected to close on or about April 1, 2005, said Ed Lemco. An offer from another non-powersports training group was rejected, he said. Financial details were not disclosed.
The cash sale is part of his planned retirement process, said Lemco. Initially, he said, he planned to sell the company to employees, but such a move would have taken too much cash out of the company, and would have prevented it from making planned upgrades to its operations.
The Ride Now group is Lemco's largest customer, spending more than $100,000 annually for training services, according to Lemco. The purchase will allow Ride Now to expand its internal training program as it controls the development of the Lemco organization.
While some dealers have expressed concern that Ride Now would see the confidential dealer data submitted as part of Lemco 20 Groups, “confidentiality is not an issue,” says Lemco.
As part of the purchase agreement, Lemco will continue to be involved as a mentor and non executive director of the company for two years, he said.
Copyright 2005 Powersports Business