International Dealer News IDN 119 June/July 2014 | Page 15

TUCKER Rocky/Biker’s Choice and
Motorsport Aftermarket Group
(MAG) have announced that their
previously announced "merger" has
now been completed.
As planned, the combined
company will operate under the MAG
name, with John A. Lacy, President
and CEO of Indianapolis based Lacy
Diversified Industries (LDI Ltd., being
the majority shareholder of the
combined company) as the Chief
Executive Officer.
Brian Etter will continue in his role
as President of MAG’s "branded
product, media and online retail
operations”, with Dan Courtney
continuing as President of Tucker
Rocky/Biker’s Choice.
The former MAG majority owner,
the Los Angeles based equity investor
Leonard Green & Partners and other
"legacy MAG shareholders" as they
are being described, will retain a
"significant minority interest in the
combined company".
Best known as the owners of Vance
& Hines, Performance Machine,
Kuryakyn, Progressive Suspension,
J&P Cycles and a number of other
high profile specialist motorcycle
industry parts and accessory brands,
manufacturers, retailers and media
outlets, MAG is being touted as
having "merged" with the Tucker

Rocky/Biker's Choice operation.
However, industry talk of an arising
likelihood that the deal implies some
kind of upcoming 'integration' plan
between the two aftermarket giants
appears to be wide of the mark.
The deal in fact appears to be a lot
simpler at this stage, with Tucker
Rocky's parent company LDI simply
making a strategic acquisition which,

in effect, sees them taking an
ownership position as an alternate
investor to Leonard Green & Partners
or acquisition by some other equity
investor.
It would appear that Leonard
Green had decided that the interests
of the investors in fund through which
their ownership of MAG was held and
funded would now be better served
by realising value at this time, rather
than continuing with its ownership.
In this context industry insiders are

pointing to LDI as being an excellent
ownership candidate for MAG as the
company has both the resources and
the pedigree to be a beneficial longterm owner of a power sports
industry business, as proven by their
established track record as owners of
Tucker Rocky.
At the time that the plan was press
released some seven weeks before
this completion announcement, LDI
stated that it “had been a major
participant in the power sports
industry for 25 years through its
ownership of Tucker Rocky/Biker’s
Choice", and referenced their
business ownership strategy as being
one of "build and hold".
That said, rumours about
consolidation and potential
"merger" of operations were rife at
the time, fuelled in part, it would
appear, by LDI also stating that “longterm success for the company will be
built by bringing enhanced selection,
service and solutions to power sports
dealers in order to drive retail sales
growth”. A statement that appears to
presage leveraging of combined
ownership and Tucker Rocky/Biker's
Choice resources in a rather more
"integrated" way than a simple
investment holding company strategy
might suggest.
While those rumours have died
down since, and with all concerned
remaining tight-lipped about details,
there nonetheless is widespread relief
that MAG ownership will reside
"within" the industry and a growing
sense that this particular chapter in
the story of aftermarket consolidation
brings opportunity for dealers with it.
At the time MAG Chairman,
shareholder and original founding
partner Arnie Ackerman was quoted
as saying that “the strategic merit for
this combination stems from the
highly complementary product and
service offerings of each of these
Continued in page 16

Motorcycle dealers in the US
have the chance to see their
customers win a total of
nearly $30,000 in gift
certificates and other prizes,
thanks to the Revive Your
Ride! Spring Giveaway
promotion, sponsored by the
aftermarket members of the
Motorcycle Industry Council.
The twice-per-year
promotion is entirely free for
dealers, and free for
consumers to participate.
BRP is to build a new Can-Am
plant in Juarez, Mexico. The
45,000 sq m (500,000 sq ft)
facility represents an estimated
$55 million Canadian
(€
37m/US$50m) investment.
Manufacturing operations will
begin by the end of 2015, with
the project completed by the end
of 2017; 900 jobs are expected to
be created. BRP already has a
facility in Juarez, on the border
with the US, and both plants will
be geographically close to each
other. This will be BRP’s third
facility in Mexico.
Just as the Orlando, Florida
based AIMExpo announced
that it has now clocked up its
300th exhibitor booking for
its second annual show in
October, Dealer Expo
organiser Advanstar said that
it has "more than 125
companies already
contracted to exhibit at the
2014 Dealer Expo", and that
"nearly 2,200 retailers have
registered for the (Chicago,
December) event as well."
American Sidi boots distributor
Motonation is to sell the Sidi
casual apparel range retail direct
at break-even pricing in order to
propagate brand ID and values.
The Sidi Casuals range has never
been stocked by US dealers.

INTERNATIONAL DEALER NEWS - JUN/JUL 2014

15

S ources: The Bradley Report, AMD Magazine, Big Bike Europe, MIC, AMA, PSB, Dealernews

Tucker Rocky/MAG
"merger" deal completed

POWERSPORTS
INSIDERS