Cycle Country Accessories Corp. Signs Purchase Agreement To Acquire Perf-form Products, Inc.
MILFORD, Iowa--Feb. 20, 2002--Cycle Country Accessories Corp. (OTCBB:CYCY), the recognized leader in the development and manufacturing of high quality accessories for the all-terrain vehicle (ATV), announced today that the Company has entered into a definitive purchase agreement to acquire Perf-form Products, Inc. The purchase is subject to certain closing conditions, including inventory evaluation of Perf-form. The Company anticipates the purchase to be completed before the end of Cycle Country's second quarter on March 31, 2002.Perf-form Products, Inc. had revenues of approximately $538,000 for 2001 with profitable operating results. It is expected that the positive effect on earnings for Cycle Country will be approximately $.02 to $.03 cents per share fully diluted. Perf-form's products are complimentary to those of Cycle Country and are available in many motorcycle and ATV shops and dealers across the country. Both Cycle Country and Perf-form's products are sold through most of the same distributors.
In light of this announcement, Ronald Hickman, President of Cycle Country, stated: "We are very enthusiastic about the synergies between our two companies. The long-standing reputation and quality of Perf-form's motorcycle and ATV oil filter products make this acquisition a natural fit. We have received resounding positive feedback from our distributors and have identified numerous compatibilities for further growth together. Additionally, we fully expect to capitalize on Cycle Country's strong distribution network to maximize earnings from Perf-form's historically profitable company."
Perf-form Products founder Doug Koelfgen said: "Everyone agrees with the significant opportunity offered by joining the Cycle Country family of products. We have worked hard over the last 15 years to make high quality replacement oil filters for motorcycle and ATV dealers throughout much of the country. By utilizing Cycle Country's vast distribution channels, we are extremely excited about making our products available to consumers worldwide."
About Perf-form Products
Perf-form Products, Inc., http://www.perf-form.com, headquartered in Big Lake, Minnesota, has been in the business of designing and manufacturing premium quality motorcycle and ATV oil filters since 1981. The Company's largest product line is a chrome replacement filter for Harley-Davidson Motorcycles along with manufacturing oil filters for other popular makes including Honda, Kawasaki, Suzuki, Yamaha and additional major brands of cycles now available. Perf-form Products' existence has been predicated on producing the best motorcycle and ATV oil filters in the world. By using premium quality materials including prime Tin-Plated steel end cups, special high temperature plastisol and Microglass / Synthetic enhanced saturated filter media, Perf-form oil filter products prolong engine life and performance for the most discriminating motorcycle and ATV enthusiast. The high performance Perf-form product features cannot be found in any other motorcycle/ATV oil filters on the market. About Cycle Country Accessories Corp.
Cycle Country, http://www.cyclecountry.com, with over 50% of the worldwide market, is the industry leader in the design, engineering and manufacturing of custom fitting accessories for the all-terrain vehicle (ATV). Since 1981, Cycle Country has developed an extensive line of branded products of mowers, plows, spreaders, sprayers, hitches and many other utility equipment items along with accessories for the recreational user. The Company's accessories custom fit virtually every brand of ATV on the market including all models from Honda, Polaris, Yamaha, Kawasaki, Suzuki, Arctic Cat and Bombardier. Cycle Country's ATV accessory products are distributed throughout the U.S.A. and Canada by a group of 16 distributors who sell their products to essentially all ATV and motorcycle dealers in North America.
The Company has also developed strategic arrangements with 19 international distributors that sell Cycle Country products in Asia, Europe, Central and South America. Current distribution agreements are in effect in 35 countries. Additionally, Cycle Country dominates the golf car wheel cover market by manufacturing approximately 90% of all wheel covers sold to original equipment manufacturers (OEM's) worldwide.
For further information, visit Cycle Country's website at http://www.cyclecountry.com or e-mail toIR@cyclecountry.com. Please direct any financial questions to Scott Gibson, Managing Principal at Veritas Capital Group via CYCY@veritascap.com or call 407/562-1900 from 9A.M. until 5P.M. (EST). Cycle Country Corporate Headquarters: 2188 Highway 86, Milford, Iowa 51351, 1-800/841-2222
This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of Cycle Country Accessories Corporation, nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
Forward looking statements: This press release and other statements by Cycle Country may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "potential," or future/conditional verbs such as "will," "should" and "could."