Edelbrock Expands Shock Technology License Agreement
7 April 1999
Edelbrock Expands Shock Technology License Agreement With Ricor Racing to Include Key OEM Markets
Move Paves Way for Edelbrock to Market High-Performance PerformerIAS(tm) Shocks Worldwide to Original Equipment Automakers, Others;
This Move Significantly Increases the Addressable Market for the Company's New Shock Absorber Assemblies Enhancing Further Long-Term
Growth Opportunities for This, the Newest Addition to Edelbrock's
Broad Product Offering
Edelbrock Corp. (Nasdaq NM:EDEL) Wednesday announced that it has significantly expanded its technology License Agreement with Ricor Racing and Development, L.P. by acquiring the rights to market and license worldwide Edelbrock Performer IAS ("Inertia Active System") shock absorbers directly to all automotive and motorcycle original equipment manufacturers ("OEMs").
The expanded agreement also now enables Edelbrock to sell the product's specialized piston assemblies alone or to sub-license the underlying technology to other shock absorber manufacturers. Ricor, based in Sutter Creek, Calif., developed and holds the patent to the technology on which the Performer IAS is based.
Edelbrock already owns the exclusive right to market the product worldwide, with certain exceptions, to the automotive and motorcycle aftermarkets.
The amended agreement significantly expands the sales potential of the Performer IAS by allowing Edelbrock to market the product directly to Ford, Daimler-Chrysler AG, and General Motors, as well as to Harley-Davidson Inc., the only major domestic motorcycle manufacturer. Edelbrock already sells the Performer IAS, which it introduced in 1997, to the U.S. automotive aftermarket through a nationwide distribution network.
To support its OEM specialty sales effort, Edelbrock recently signed a three-year contract with Dyna-Trends International Inc. a respected, Michigan-based sales organization that specializes in representing automotive products to OEMs. Dyna Trends has been marketing the Performer IAS to manufacturers as an upgrade for a range of specialty limited production vehicles.
"This expansion of our agreement with Ricor Racing and Development provides an exceptional opportunity for Edelbrock to build its share of the "performance oriented" shock absorber/ride control market, which for some time has been dominated by a small number of participants," observed Edelbrock Chairman and Chief Executive Officer Vic Edelbrock.
Edelbrock further added, "The company feels that the sport utility vehicle (SUV) sub-segment of the OEM market in particular will welcome the opportunity to utilize Edelbrock's new technology to improve the ride of these larger and rougher handling vehicles. This SUV market is, in turn, one of the fastest-growing segments of the automotive industry.
"There are two very compelling reasons why we feel the Performer IAS will be well received by OEMs," Edelbrock noted. "First, they share our commitment to provide customers with the best driving experience possible. The Performer IAS helps them achieve that goal by virtually eliminating the age-old trade-off of smooth ride for better handling.
"In rigorous testing by the most demanding consumers in the marketplace, our existing high-performance customers, the Performer IAS has already proven itself. We believe this high performance product will be sought after in the OEM market just as readily," added Edelbrock.
"The second reason we're so confident the Performer IAS will succeed in this market is that it's already passed the rigorous road testing given to it by some of the most demanding drivers we know: the performance enthusiasts who make up the bulk of our traditional aftermarket customer base," Edelbrock continued.
"We're convinced that buyers of new cars, trucks, sport utility vehicles, vans and motorcycles would like to get that same performance right off the showroom floor," said Edelbrock.
This new arrangement accomplishes this and opens up virtually the entire U.S. Automotive market to Edelbrock for performance-oriented shock absorbers.
Founded in 1938, Torrance, Calif.-based Edelbrock is recognized as one of the nation's premier designers, manufacturers and distributors of performance replacement parts for the automotive and motorcycle aftermarkets.
In addition to three production facilities in Torrance, the company owns and operates a state-of-the-art aluminum foundry and its QwikSilver Division for motorcycle aftermarket parts in San Jacinto, Calif., at which it manufactures many of its quality products.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Any statements set forth above that are not historical facts are forward-looking statements that involve known and unknown risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as the financial strength and competitive pricing environment of the automotive and motorcycle aftermarket industries, product demand, market acceptance, manufacturing efficiencies, new product development, the success of planned advertising, marketing and promotional campaigns, the success of the company's, its vendors', and its suppliers' Year 2000 compliance programs and other risks identified herein and in other documents filed by the company with the Securities and Exchange Commission.