SOME VERY GOOD NEWS!!!!
Newriders Inc. to Acquire $40 Million Dollar
Publisher of Easyriders Magazine; Deal Gives
New Riders Exclusive Ownership of the
Easyriders Franchise
Business Wire - October 30, 1997 08:03
NEWRIDERS NWRD %CALIFORNIA %ENTERTAINMENT %FOODS
%BEVERAGES V%BW P%BW
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NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Oct. 30, 1997--Newriders Inc.
(NASDAQ:NWRD), operators of Easyriders Cafe motorcycle theme restaurants,
has signed a preliminary letter of intent to acquire Agoura, California-based
Paisano Publications, publisher of Easyriders magazine and other motorcycle
lifestyle magazines, and owner of the overall "Easyriders" brand franchise. The
acquisition, which is contingent upon satisfactory due diligence and financing, is
expected to close January 1998.
Specific terms of the acquisition were not disclosed. Paisano, a profitable
privately held company with no debt, has annual revenues of approximately $40
million. Besides Easyriders magazine, Paisano Publications stages and attends
special events, merchandises motorcycle apparel, and franchises as well as owns
and operates Easyriders Cafe restaurants, apparel stores and high-end
motorcycle super stores.
Upon closing, Joe Teresi, sole shareholder of Paisano, will become a substantial
shareholder in Newriders, and join the Newriders' Board of Directors.
John Martin, former chairman and chief executive officer of Taco Bell worldwide,
and current chairman of Newriders, said, "This very important acquisition will
instantly transform Newriders from a royalty-paying franchisee, with limited rights
to use the Easyriders concept, to a royalty- and revenue-generating franchisor with
the ability to powerfully leverage an incredibly wide range of Easyriders' brand
extensions.
"We believe that by combining our extensive franchising and licensing experience
with the tremendous brand equity that Paisano has been able to build for
Easyriders over the past 25 years, we can create an integrated communications,
entertainment, retail, franchise and licensing company with significant
opportunities for growth," Martin said.
Teresi commented, "We've reached an important point in our business where we
can benefit greatly by the kind of experience and management that John Martin
and his Newriders team can bring.
"As a substantial shareholder in Newriders, I expect to continue to have significant
input into the future plans and development of the business. I'm excited to be part
of a larger team, and I am very enthusiastic about where we are headed. This is an
absolutely terrific fit between two companies with very complementary strengths
and resources," Teresi said.
Newriders, with its potential to become a leading player in motorcycle products
and branding, is well-positioned to capitalize on the strong opportunities in a
concept Martin refers to as "eatertainment" -- the combining of dining, retail and
entertainment.
"People today clearly want more than just great food when they eat out. They want
a memorable and unique experience," Martin said. "And there's no doubt that
mainstream America is falling in love with motorcycling. It carries with it so many of
the attributes that more and more Americans want today -- a sense of freedom,
the desire to express individualism, and the willingness to take calculated risks.
The remarkable success of Harley Davidson is testimony to what American
motorcycling has become. And as keeper of such a well-established brand as
Easyriders, we see tremendous opportunities to bring together in powerful ways
all of the facets of the concept -- in retail sales, accessories, publishing, event
management and, of course, theme dining."
The following important factors may affect Newriders' actual results and could
cause such results to differ materially from the forward-looking statements made
by or on behalf of Newriders and/or Paisano Publications.
Such factors include, but are not limited to changing market conditions, the impact
of competitive products and pricing, timely development, regulatory intervention,
the cost of goods, availability of financing, and other risks detailed from time to
time in Newriders' Securities and Exchange Commission filings.
Newriders is publicly traded on the Nasdaq Bulletin Board under the symbol
NWRD.
CONTACT: Newriders
Bill Nordstrom, 714/718-4630
or
Paine & Associates
David Paine, 714/755-0400
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