Action Performance acquires Sports Image Inc. from Dale Earnhardt, seven-time NASCAR Winston Cup champion.TEMPE, Ariz.--(BUSINESS WIRE)--Nov. 7, 1996--Action Performance Cos. Inc. (NASDAQ/NM:ACTN ACTN Action ACTN Acetone ) Thursday announced that it has acquired the business and assets of Charlotte, N.C.-based Sports Image Inc. for a $24 million promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. due on Jan. 2, 1997 and approximately 400,000 shares of common stock, representing a $30 million transaction. Highly profitable with estimated annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue of approximately $44 million, Sports Image is expected to double Action's revenues and increase its per share earnings. Owned by Dale Earnhardt, seven-time NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. Winston Cup Champion and GM Goodwrench Service Driver, Sports Image markets and distributes licensed motorsports products, including apparel and other souvenir items, through a network of wholesale distributors, trackside track·side n. The area near a track, especially a racetrack. events, and fan clubs. Under the terms of the agreement, Earnhardt signed a 15-year license agreement, with renewal options, granting Action the use of his name, and he will serve as an advisor to Action's board of directors. With approximately 70 employees, the business of Sports Image will continue to operate in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Action Performance. Commenting on the acquisition, Fred W. Wagenhals, chairman, president, and chief executive officer of Action Performance, stated: "We have enjoyed a long-standing relationship with Mr. Dale Earnhardt, which has culminated in this merger of interests between Action and Sports Image. This acquisition complements our other lines of business and strengthens our position in the market. "Additionally, it represents a natural continuation of our strategy to offer motorsports personalities the widest array of services in the market and a substantive vehicle for maximizing their earnings over the life of their careers. "Mr. Earnhardt brings with him a racing image and reputation unequalled in the industry, which will aid us immensely as we continue to attract other motorsports personalities and licensing opportunities. We look forward to expanding our base of personalities and achieving significant revenue and earnings growth from this acquisition and our partnership with Dale." Earnhardt added: "Over the years, Action Performance has provided a range of excellent products and continues to introduce new and unique marketing ideas that increase awareness of the sport. I am very excited about this new partnership and look forward to helping Action achieve its objectives." Action Performance designs and markets die-cast and pewter collectibles of NASCAR, NHRA NHRA National Hot Rod Association NHRA Northland Human Resource Association NHRA National Human Resources Association NHRA Nursing Home Reform Act NHRA National Hospice Regatta Alliance NHRA National Heritage Resources Act (South Africa) , World of Outlaws The World of Outlaws (often abbreviated WoO) is an American motorsports sanctioning body. The body sanctions two major national touring series. It is best known for sanctioning a national tour of sprint cars. (WOO), and other motor racing cars and related memorabilia. The company has license agreements with nearly all of the leading race car drivers, sponsors, and vehicle manufacturers. Its products, manufactured in China and the United States, are marketed directly to its Racing Collectables Club of America with more than 70,000 members and through approximately 5,000 retailer dealers. CONTACT: Action Performance Cos. Inc., Tempe Christopher Besing, 602/517-3703 Fred Wagenhals, 602/517-3710 or Silverman Heller Associates Eugene G. Heller/Lynne P. Farris, 310/208-2550 |
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