Racing Champions Completes Acquisition of the Ertl Company, Inc.
GLEN ELLYN, Ill.--(BUSINESS WIRE)--April 14, 1999--Racing Champions Corporation (NASDAQ: RACN - news) today announced that it has completed the acquisition of The Ertl Company, Inc., one of the oldest and most respected names in collectibles. The transaction will be accounted for as a purchase.
With $175 million in annual revenues, Ertl® is the market leader in both agricultural and custom imprint die-cast collectibles. Racing Champions funded the all-cash purchase price of approximately $105 million with the proceeds of a drawdown under its $175 million Senior Credit Facility, provided by a bank syndicate led by First Union Capital Markets Corp.
Bob Dods, Chairman and CEO, said, ''The acquisition of Ertl represents a very exciting opportunity to expand Racing Champions' participation in the rapidly expanding market for collectibles. Many of the management and operating capabilities which have contributed to our success in NASCAR die-cast collectibles also have direct application to Ertl's product lines. We look forward to not only realizing significant synergies from combining our two companies, but to leveraging our already well-known brand identities across wider distribution channels to further heighten our profile within the collectibles market.''
Founded in 1989, Racing Champions (http://www.racingchampions.com) is a leading producer and marketer of collectibles available at more than 20,000 retail outlets throughout North America. The company is best known for its extensive lines of officially licensed NASCAR die-cast racing replicas, Press Pass trading cards and NASCAR souvenirs and apparel. Additional high profile, licensed die-cast series include WCW, Sony Signatures, Outdoor Life and Field & Stream.
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Contact:
Racing Champions, Glen Ellyn
Curt Stoelting, 630/790-3507, ext. 133 |
