May 10, 2004 – Finance Digest
May 10, 2004
Filed under Features
Edelbrock proposes purchases
Edelbrock Corporation, the Torrance, Calif., designer, manufacturer and distributor of performance replacement parts for the automotive and motorcycle aftermarkets, said O. Victor Edelbrock, Jr., the company’s chairman, president and CEO, has offered to pay $14.80 per share for the 48.8% of the company’s stock not currently held by him or his affiliates, a deal estimated to be worth about $40 million.
If the proposed transaction is completed, stockholders other than Edelbrock and his affiliates would no longer own any shares, and there would no longer be a public market for the shares. Edelbrock said its board of directors has formed a special committee of independent directors to review the proposed transaction.
Edelbrock had fiscal 2003 revenues of $115.2 million, and net income of $2.97 million, or 54 cents a share.
KTM to issue bonds
Austrian motorcycle maker KTM reportedly plans to issue a five-year bond at a par value of $106.42 million. Proceeds from the bond sale will be used for further expansion as well as for improvement of the companys financial structure, reports Austrian News Digest.
The bulk of the funds will be used for development of new street motorcycle models as well as for expansion of the sales network in eastern Europe, a company official reportedly told the news service.
Lehman saleS up, profits dip
Lehman Trikes Inc. reported a loss of $1.5 million or about seven cents a share for the year ended Nov. 30, 2003, reversing a profit of $386,000 or two cents a share for fiscal 2002.
Officials at Lehman, which assembles and sells kits that convert conventional two-wheel motorcycles into three wheel motorcycles known as trikes, said the firm was hit by currency losses despite a 20% jump in revenues from the $14.4 million it reported in 2002.
Cycle Country signs deal
Land Pride, a division of Great Plains Mfg., Inc., Salina, Kan., has selected Cycle Country Accessories Corp. (OTCBB:CYCY) Milford, Iowa, to provide ATV accessories for five new utility vehicles.
The accessories to be furnished by Cycle Country include front and rear racks, brush guards, winch kits, rear screens and snowplows for Land Pride’s new Off-Road Light Utility Vehicles’ Runabout and Treker series.
Started in 1986, Land Pride has become a major U.S. manufacturer of tractor and skid steer mounted implements including rotary tillers, grooming mowers, overseeders, rotary cutters, rear blades and landscape rakes. Great Plains Manufacturing, Inc., is a privately owned company with about 700 employees in seven manufacturing plants located primarily within the state of Kansas. Founded in 1976, the company maintains distributor/dealer representation in over 20 countries.
Cycle Country sells high-performance premium oil filters for motorcycles and ATVs throughout the U.S. under the brand name Perf-form Products, and manufactures heavy-duty garden equipment attachments for garden tractors, ATVs and other utility vehicles within the lawn and garden industry under their brand name Weekend Warrior.