Racing Champions To Acquire The Ertl Co., Inc.
1 February 1999
Racing Champions To Acquire The Ertl Co., Inc.
GLEN ELLYN, Ill.--Feb. 1, 1999--Racing Champions Corporation today announced that they have signed a letter of intent to acquire The Ertl Co., Inc., a wholly-owned subsidiary of U.S. Industries, Inc. .
The acquisition, which is subject to due diligence, completion of a definitive purchase agreement, regulatory approvals and other closing conditions, is expected to close by April 15.
One of the oldest and most respected names in collectibles, Ertl was founded in 1945 by Fred Ertl, Sr. Today, Ertl is the market leader in both agricultural and custom imprint die cast collectibles. In addition, Ertl's hobby model kit brand, AMT, is a market leader. Revenues for the fiscal year ended September 30, 1998 totaled approximately $175 million.
Bob Dods, Chairman & Chief Executive Officer, said, "We are delighted to have the opportunity to pursue what we believe will be a very synergistic acquisition for Racing Champions. Ertl has built a well-respected brand equity in die-cast collectibles, and consummating this transaction would substantially broaden Racing Champions collectibles business. In addition, we believe there would be significant opportunities to expand the combined companies strong presence in all categories of die cast collectibles including NASCAR, custom and classic and agricultural."
Founded in 1989, Racing Champions (www.racingchamps.com) is the leading producer and marketer of racing die-cast replicas sold at more than 20,000 North American retail outlets. The Company has leveraged this leadership position and its relationship with NASCAR to become a premier marketer of an extensive line of NASCAR products, which in addition to die-cast racing replicas consists of Press Pass trading cards, apparel and souvenirs. Building on its proven retail strategies, and its leading-edge design and manufacturing capabilities, Racing Champions has also broadened its offering of die-cast collectibles to include high profile, vehicle replicas including Motor Trend and Hot Rod magazines, World Championship Wrestling and Sony "Signature" licenses.
Forward looking statements in this release are subject to many uncertainties in the Company's operations and business environment. These uncertainties include general economic conditions, demand for the Company's products, competition, availability of certain licensed properties and costs of operations. Such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.
