Jan. 18, 2010 – Finance Digest
January 18, 2010
Filed under Features
Off-road firm receives funding
San West Inc., which designs, manufactures, sells and repairs off-road buggies, has entered into an agreement for a $10 million equity line of credit with Dutchess Opportunity Fund.
“This significant financing arrangement gives San West and its subsidiaries access to growth capital, enabling us to accelerate our growth strategy and implement additional marketing initiatives to take full advantage of the increasing demand for personal motorsports vehicles, parts, services and accessories,” said San West Inc. CEO Frank Drechsler. “We expect to use this capital to further leverage our retail and online sales activities and further reinforce our brand in the industry.”
Drechsler also said the company is now prepared to enter the off-road motorsports and PWC industries.
Affinity ANNOUNCES STRATEGIC FINANCING
Affinity, the nation’s largest provider of outdoor recreation clubs, services, media and events, has entered into a non-binding letter of intent with a private equity firm to fortify its capital structure.
The transaction will provide $70 million in new funding and award the firm a future economic interest in Affinity, the parent company of Powersports Business.
“This new source of capital will allow Affinity to reinvigorate its growth strategy and put the company on a more secure financial footing going forward,” said Mike Schneider, CEO of Affinity. “In spite of the severe downturn in the RV industry this last year, we are pleased the company has come through this difficult period and will now be able to grow with the industry’s anticipated recovery.”
A multi-media company, Affinity is well known for managing several membership clubs, including the Good Sam Club, the world’s largest RV owner’s organization, in addition to operating numerous consumer and business Web sites, publications and shows for RV, powersports and marine enthusiasts.
Harley-Davidson sells part of land on york, penn. facility
Harley-Davidson Inc. will sell part of its land at its York County, Penn., property, according to The Business Journal of Milwaukee.
The company has reached an agreement to sell 58 acres of the land to the York County Development Authority, the report said.
Gander Mountain’s powersports sales decline
Gander Mountain Co., a retailer of outdoor sports equipment, said it had a slight increase in its third-quarter sales compared to the year-ago period. The increase amount to $5.5 million, or 2.2 percent. However, the Minneapolis-based company said its sales of lower-margin powersports products decreased $22.6 million during the first nine months of fiscal 2009. The company has substantially exited the sale of ATVs and powersports services, Gander Mountain said in its quarterly report.
Zero motorcycles receives additional funding
Zero Motorcycles, an electric motorcycle manufacturer, raised $5.5 million in funding in December, according to a Santa Cruz Sentinel article.
Zero Motorcycles employs more than 40 people and plans to add more jobs in the coming year, according to the Santa Cruz Sentinel article.