| 07/17/2001 | Huffy Corporation to Buy the Bankrupt Schwinn/GTHuffy confirmed today that the Company has executed a definitive agreement to purchase the trademarks and selected cycling assets of Schwinn/GT Corp. Under the terms of the agreement, Huffy will pay an amount estimated to be in excess of $60.0 million for the brands and trademarks of Schwinn/GT and for the inventory, accounts receivable and certain other assets of the cycling business.
Schwinn/GT has commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code. This filing is necessary to allow Schwinn/GT to complete the sale of the cycling business. In accordance with Section 363 of the Bankruptcy Code, other companies will have an opportunity to submit bids through a court supervised competitive bidding process. Additionally, expiration of the Hart-Scott-Rodino waiting period is required prior to closing of the transaction.
Don Graber, Chairman, President and CEO said, “An opportunity such as this comes along only rarely. The Schwinn® brand is one of the most widely recognized brand names in the world and together with GT® and other brands would strengthen our existing brand portfolio. The Schwinn and GT brands are ideal candidates for multi-channel distribution, capitalizing on Huffy’s marketing and brand management expertise.”
“The Schwinn/GT cycling business would be an excellent strategic fit within our existing bicycle business model and another example of Huffy’s continuing commitment to exploring and implementing a variety of strategic alternatives to enhance earnings and maximize value for our shareholders. We will continue to work with our external financial advisors as we evaluate additional alternatives.” Graber concluded.www.huffy.com
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