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Tuesday, 1 April 2014

MAG merges with Tucker Rocky/Biker's Choice

MAG merges with Tucker Rocky/Biker's Choice

Tucker Rocky logo The owner of Fort Worth, Texas based distributor Tucker Rocky/Biker's Choice (Lacy Diversified Industries/LDI of Indianapolis) has announced that it has acquired a majority ownership position in the Irvine, California headquartered Motorsport Aftermarket Group (MAG).
The deal to acquire a majority ownership position in MAG, 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 and manufacturers, is being described as a "merger" between MAG and their Tucker Rocky/Biker's Choice operation.

MAG logo According to the text of a March 27th statement released by all three parties LDI "will become the majority shareholder of the combined company" with Leonard Green & Partners, (L.P. - the current majority shareholder of MAG) and other existing MAG shareholders retaining "a significant minority interest in the combined company."
LDI states that it "has been a major participant in the powersports industry for 25 years through its ownership of Tucker Rocky/Biker's Choice" and the company says that when the deal is finalised J.A. Lacy, President and CEO of LDI, "will become Chief Executive Officer of the combined company" and that the new entity "will operate under the Motorsport Aftermarket Group name."
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.
MAG Chairman, shareholder and original founding partner Arnie Ackerman is quoted as saying that "the strategic merit for this combination stems from the highly complementary product and service offerings of each of these businesses."
For the new parent company, J.A. Lacy is quoted as saying that "long-term success for the company will be built by bringing enhanced selection, service and solutions to powersports dealers in order to drive retail sales growth."
Lacy Diversified is an American institution, specifically an Indianapolis institution, owing its origins to a business founded there in 1912 by Howard Lacy. The Lacy Diversified name was adopted in 1972 to reflect the evolution of the group and now, 102 years since it was founded, it is still owned and operated by the Lacy family, with Andre Lacy as Chairman and his son, representing the fourth generation of the family, as CEO and President.
Lacy say theirs is a "build and hold" business ownership strategy, and point to their 25 year ownership of Tucker Rocky/Biker's Choice as testimony to their long-term investment approach.
Tucker Rocky owes its origins to Texan Ed Tucker's 1967 wholesale motorcycle oil business and subsequent expansion and diversification following Bob Nickell's purchase of the business in 1972.
The business became Tucker Rocky (TR) in 1986 following the purchase of Rocky Cycle, and was acquired by Lacy Diversified Industries in 1989. NEMPCO, a specialist New England based Harley aftermarket parts business (founded in 1971 by Larry Coppola) was bought by Tucker Rocky in 1992 in order to give the group strength in the then fast developing custom parts industry that had already seen the emergence of several strong specialty distribution brands.
TR re-branded NEMPCO as Biker's Choice (itself a NEMPO own brand) in 1998; the business is a strictly wholesale operation that claims it sells over 100,000 products to all sectors of the motorcycle and wider powersports market, through seven domestic US distribution centers.
MAG was founded in 2000 by Arnie Ackerman and his partners in the San Francisco based equity investor Duff Ackerman and Goodrich (DAG), with the specific intention of acquiring, financing and developing leading motorcycle aftermarket parts and accessory brands and manufacturers.
As the man who had largely guided the acquisition strategy and driven development of the Group, Arnie Ackerman retained a shareholding in MAG in 2006 when DAGs interest was acquired by Leonard Green & Partners - the Los Angeles based equity investor with current involvements in well known consumer brands such as Petco, The Sports Authority, J Crew, Top Shop, Lucky Brand Jeans and the Palms Casino Resort in Las Vegas.
Although details are confidential, it would appear that the structure of the deal will mean that Ackerman, and several of the former principals of the businesses that MAG has acquired, will now, effectively, also have a stake in Tucker Rocky/Biker's Choice.
At this stage no information is available as to whether or not some of the MAG owned product lines and brands that have hitherto been exclusive to TR/BC's primary competitor will also or alternatively now be available to TR/BC dealers.

J A Lacy is the fourth generation of his family to head up Indianapolis based Lacy Diversified Industries (LDI) and will become CEO of the combined company which will operate under the Motorsport Aftermarket Group name (MAG).
Following the retirement of Steve Johnson at the end of 2012 Dan Courtney became president of Tucker Rocky and will continue in that role following the merger
Brain Etter continues in his role as President of Motorsport Aftermarket Group (MAG) the parent company of well known parts and accessories brands such as Vance & Hines, Kuryakyn, Performance Machine, Progressive Suspension, J&P Cycles and UK based offroad specialist Renthall