Tucker Rocky, MAG complete merger

Biggest change for dealers will be enhanced product lineup

When Tucker Rocky Distributing/Biker’s Choice and the Motorsport Aftermarket Group (MAG) finalized their merger in mid-May, dealers might not have noticed much difference in the way they do business with the companies.

And that’s exactly what executives from both organizations expected to happen when the new company, now operating under the MAG name, was formed. J.A. Lacy, president and CEO of LDI, Ltd., the majority shareholder of the combined company, is the chief executive officer. Leonard Green & Partners, L.P. and other legacy MAG shareholders retain a significant minority interest in the combined company.

Brian Etter, president of MAG’s branded product, media and online retail operations and Dan Courtney, president of Tucker Rocky/Biker’s Choice, discussed the new operations with Powersports Business following the announcement of the merger.

PSB: What were the origins of the transaction, or how did the thought process originate that a MAG and TR merger would be a beneficial idea?

Brian Etter (BE): Both companies have known each other for a lot of years, both as customers and suppliers, and as we’ve spent a lot of time together, we’ve gained an appreciation for the similar cultures — very focused on customers and improving the customer service offerings. We share a similar vision. MAG approached it from having strong brands; Tucker has a great sales organization and logistics. We felt together we could accomplish our vision faster than we can separately.

PSB: How will the two companies operate — completely as one, as two sharing many of the same resources, or completely separately?

BE: We’re continuing to operate under the decentralized structure of MAG. MAG will continue to be the named parent entity, but we go to market with our brands. We currently have on the MAG side a brand and retail/media division, and with this merger it will now have a distribution division, all of which will be managed separately, and the leadership teams of the respective businesses will continue to be in place.

PSB: If they will be separate, will Tucker Rocky distribute all MAG products?

Dan Courtney (DC): The MAG brands will determine their distribution strategies, not Tucker Rocky. Tucker Rocky will continue to seek brands to distribute to be the best product offering to the dealer population. I would expect Tucker Rocky to have to earn that business from those MAG brands and continue to find ways to partner with vendors to grow their brand.

PSB: How will this affect the MAG brands that were being distributed by other industry distributors?

BE: We value our current distributor partners and expect to continue to offer our products through those distribution relationships. We don’t see any changes there.

PSB: How will this affect MAG competitors that have been distributed by Tucker Rocky?

DC: I can assure you that Tucker Rocky and Biker’s Choice will continue to partner with suppliers to support their growth in the marketplace. Brands matter. Our customers want choice, and we will continue to partner with suppliers to grow their market share.

PSB: MAG has been known to purchase companies and then simply act as a steward of sorts, allowing the companies to run their programs in a business-as-usual manner. Will or how will that dynamic change?

BE: We believe that in a decentralized environment, our businesses can react more quickly to the needs of their customers, and we want to empower them to make those decisions locally. As compared to a command and controlled environment, we’re just not set up for it, nor do we think that’s the best approach in this market.

PSB: Will Tucker Rocky sales reps notice any significant changes?

DC: Our sales reps sell a full array of products. I see our sales reps and marketing efforts continue to partner with the suppliers to place the product in the dealer populations to help grow the dealer’s business. I do not see significant changes to the role of our sales reps in that case. It gives them a stronger product array to sell.

PSB: What changes will dealers notice from their partnerships with both Tucker Rocky/Biker’s Choice and MAG?

BE: Longer term, they will enjoy a broader offering of products. They’ll have options as to which brands they want to purchase from which suppliers. We think it will be more of a level playing field, if you will.

DC: I also think this merger is evidence that the new MAG brand merged company is investing in the future. Our intent is to improve our customer service and support the brick and mortar dealers and promote their growth.

PSB: Will Parts Unlimited still provide distribution of MAG brands?

BE: Parts Unlimited is a very good distributor and they’re very important to the MAG brand group and will continue to be an important customer of ours. We would just envision going forward that we’ll be more of a non-exclusive, more broadly distributed brand group, because we think it’s to the benefit of the overall dealer network.

PSB: Dan, it’s so secret that Tucker Rocky/Biker’s Choice has been on an upward growth trajectory in the last few years. What can the merger do for your brand?

DC: I think access to new product will help us grow, and growing helps generate enough interest in the business that we invest and reinvest to improve our processes and that allows us to grow more. I really believe this is a positive. It will allow us to merge two strong organizations and the talents that will help us grow.