KOLPIN ANNOUNCES PURCHASE AGREEMENT FOR
ATV DIVISION OF CYCLE COUNTRYACCESSORIES CORPFox Lake, WI (September 1, 2011) Kolpin Outdoors, Inc. announced today that it has entered into an agreement to purchase the ATV Accessoriesproduct line from Cycle Country Accessories Corporation, of Spencer, IA, for $9.7 million subject to certain adjustments and contingencies. Kolpin is purchasing only theATV Accessories product line, and not anyother operating entity of Cycle Country, nor its manufacturing operations, real estate, machinery and equipment, nor its working capital assets. Cycle Country will continue to manufacturethe ATV Accessories products for Kolpin through the 2011/2012 season under a manufacturing agreement between the parties. In addition, Kolpin agreed to assume certain liabilities, including liabilities relating to the operation of the Productline after closing and certain warranty obligations of the company. Closing is expected to occur with approximately 30-45 days, subject to the appropriateregulatory review and consents. Additional information will be available in a Form 8-K that Cycle Country Accessories Corp will file with the Securities and Exchange Commission on September 1, 2011.
Kolpin is a dominant player in the ATV accessories industry. This acquisition will give Kolpin a substantial share of the ATV/UTV aftermarket accessories category. “We are very pleased be able to bring together two of the premium brands in the Powersports space, Kolpin and Cycle Country,” stated Tom Lutes, President and CEO of Kolpin. “Our intentions are to keep the current Cycle Country products and brand exclusive to the Powersports channel, while pursuing new, differentiated product in other channels under the Kolpin brand.” Lutes went on to say "this significant addition to the Kolpin family will insure our leadership position in offering our customers the broadest array of ATV/UTV accessories in the business."
The sale is subject to the satisfaction of customary closing conditions, but has been approved by written action of the stockholders of the company holding voting rights to greater than 51% of the outstanding stock in the Company, and is therefore, not subject to additional stockholder action. Closing adjustments, payment of debt and accrued liabilities, and contingent payment conditions will reduce the proceeds received from this transaction.
"After exploring all available alternatives, it was determined that selling the ATV Accessories product line was the best opportunity to maximize the value of the business for our company stockholders, as well as to provide the best opportunity for our customers,employees, and suppliers," company CEO Robert Davis said in a prepared statement.
About Kolpin Outdoors Inc:
Kolpin® Outdoors Inc. is a growth-oriented marketer and manufacturer of innovative ATV accessories and UTV accessories. As The Leader in All-Terrain Innovation, Kolpin sets the standard for quality, innovation and design. Kolpin ATV products and UTV products are designed for recreational ATV and UTV riders,hunters & outdoorsmen, and landowners. Kolpin continues to redefine theindustry with patented innovations such as our world-renowned Kolpin Expansion System (KXP), Gun Boot® cases and brackets, Stealth Exhaust, DirtWorks™ System and a large assortment of ATV and UTV accessories. To learn about the latest products, news and topics follow us on www.kolpin.com
About Cycle Country Accessories Corporation:
Cycle Country is the recognized industry leader in the innovation, design, sales, and manufacturing of custom fitting accessories for utility and all-terrain vehicles (UTVs and ATVs), under the brand name of Cycle Country Accessories. Products include snowplows, mowers, 3-point hitches and implements, storageboxes and baskets, bed lifts, brush guards and more.