MBA Holdings, Inc. and Blue Sky Motorcycle Rentals Join ForcesSCOTTSDALE, Ariz.--Dec. 1, 20043, 2004--MBA Holdings, Inc. (OTCBB:MBAH) has acquired a 50% ownership stake in Blue Sky Motorcycle Rentals Inc., a privately-held nationwide motorcycle rental chain headquartered in Denver, Colorado. With nine other licensed locations in Arizona, California, Florida, Nevada and Utah, the Blue Sky chain is a growing network with hundreds of fully insured bikes in operation. MBA and Blue Sky plan to significantly expand Blue Sky's location count and bikes in operation in 2005. Blue Sky has become a founding member of the National Motorcycle Dealers Association (NMDA), a subsidiary of MBA Holdings.
Blue Sky's offerings of Harley Davidson, Big Dog and Honda bikes deliver the motorcycles in highest demand by rental customers. With other inventory of Kawasaki and Yamaha motorcycles, ATV's, sports bikes, scooters and exotic automobiles available in various locations, Blue Sky satisfies diverse client needs and is poised to capture a greater share of the motorcycle and vehicle rental market.
Blue Sky derives monthly income from its licensees for every bike and vehicle under contract and insured for rental operations. Blue Sky currently owns its flagship Denver store and is a profitable company. With reasonable growth goals of doubling Blue Sky's location count in 2005 and then further leveraging this network to attain a strategic goal of 1000 bikes under contract, a 50% share of Blue Sky operations would generate a significant contribution to MBA's goals of top line growth and net profitability.
Blue Sky gives MBA a full partnership in a solid and vigorous business model for organically growing rental operations from the ground up. This establishes a fully complementary two-tier model for MBA to pursue its stated goal of becoming the leader in the motorcycle rental market sector. The NMDA's existing partnership with Wildside Motorcycle Rentals is ideally suited for converting existing motorcycle dealerships to rental operations. Blue Sky has established a proven start-up model for entrepreneurs entering the motorcycle business.
Providing potential rental operators viable start-up options through either Blue Sky or the NMDA ensures the ability to not only capture a greater portion of the rental market, but to also grow operations where there is unmet demand. With no significant overlap in the applicability of the two business approaches deployed, this two-tiered model is an all-encompassing strategy to build a commanding presence in the motorcycle rental market. Blue Sky will be the optimal choice for new entrants to the motorcycle business while the NMDA provides the solution for dealerships ready to establish a rental division.
Blue Sky's founder is Wayne (Lumpy) Ordakowski, the charismatic and driving force behind his company's emergence as a leading motorcycle rental chain operator. With extensive management and ownership experience in the trucking and motorcycle industries, Lumpy Ordakowski brings a wealth of talent, industry knowledge and connections to Blue Sky and MBA. The 50% acquisition of Blue Sky by MBA was completed on a cash basis plus 1.14 million shares of MBAH common stock, of which 800,000 shares are to be issued in equal increments annually over eight year's time.
Mr. Ordakowski will remain with Blue Sky as CEO to run and expand Blue Sky rental operations nationwide while MBA will provide the business and fiscal management infrastructure necessary to manage a growing chain of licensed rental operators. This arrangement is very beneficial to both parties as Mr. Ordakowski will be free to spend the majority of his time out in the field soliciting new business and growing the revenue base of Blue Sky. He is fully commissioned to represent the NMDA, market all NMDA services and sell all MBA insurance products and is expected to be a strong spokesperson for both Blue Sky and the NMDA.
Blue Sky's CEO Wayne (Lumpy) Ordakowski comments:
"MBA Holdings has embarked on an industry changing paradigm with their comprehensive development of the NMDA. I am confident that through Blue Sky's partnership with MBA we are assembling all the tools necessary to become the standard bearers for the packaging of premium services to the motorcycle industry and to assume the role of market leader in the motorcycle rental sector."
Blue Sky Motorcycle Rentals