Action Performance reaches agreement to acquire Motorsport Traditions Ltd. and Creative Marketing & Promotion Inc.TEMPE, Ariz.--(BUSINESS WIRE)--Dec. 6, 1996--Action Performance Companies Inc. (Nasdaq/NM:ACTN ACTN Action ACTN Acetone ) Friday announced that it has reached an agreement in principle to acquire Motorsport Traditions Ltd. and Creative Marketing & Promotions Inc. for approximately $13 million in cash and stock. Based in Concord, N.C., the two firms generated approximately $25 million in annual revenues from the design, manufacture and sale and distribution of licensed motorsports products, including apparel and other souvenir items through a network of wholesale distributors, fan clubs and trackside track·side n. The area near a track, especially a racetrack. events. Drivers currently under contract to the two companies include, among others, 1996 and two-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 Terry Labonte Terrance Lee Labonte (born November 16, 1956, in Corpus Christi, Texas) is a former NASCAR driver. Labonte was introduced to the sport through his father, who had worked on racecars as a hobby for his friends. , 1995 NASCAR Winston Cup Champion Jeff Gordon Jeffery Michael Gordon (born August 4, 1971) is a professional American race car driver. He was born in Vallejo, California, raised in Pittsboro, Indiana, and currently lives in Charlotte, North Carolina. , three-time NASCAR Winston Cup Champion Darrell Waltrip, Bobby Labonte, Michael Waltrip, Ricky Craven, Jimmy Spencer and Johnny Benson Jr. Additionally, Motorsport Traditions holds licenses with NASCAR and NASCAR Winston Cup. The acquisition, which is subject to completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and other customary closing conditions, is expected to close by the end of the calendar year. Fred W. Wagenhals, chairman, president and chief executive officer of Action Performance, commented: ``With the acquisition of these profitable entities, we will advance our strategy of expanding our base of personalities by bringing an increasing number of drivers under our umbrella. ``We believe that by consolidating their functions with those of Sports Image, we will be able to capitalize on the economies of scale and infrastructure already in place, which will further enhance their profitability and be accretive to our earnings in the second quarter of fiscal 1997.'' 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 Companies Inc. Fred Wagenhals, 602/517-3710 Christopher Besing, 602/517-3703 or Silverman Heller Associates Eugene G. Heller/Lynne P. Farris, 310/208-2550 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion