SCCA Exploring Sale of SCCA Enterprises Subsidiary TOPEKA, Kan. (June 7, 2006) -- At its May face-to-face meeting, SCCA's Board of Directors elected to move forward with the potential sale of Sports Car Club of America Inc. subsidiary ...
SCCA Exploring Sale of SCCA Enterprises Subsidiary
TOPEKA, Kan. (June 7, 2006) -- At its May face-to-face meeting, SCCA's Board of Directors elected to move forward with the potential sale of Sports Car Club of America Inc. subsidiary SCCA Enterprises, which distributes the SCCA Spec Racer, Formula SCCA and SCCA Sports Racer.
"The Board came to the decision that we needed to look into a potential sale," SCCA President and CEO Jim Julow said. "The next logical step was for us to get a third party valuation of what Enterprises might be worth on the open market. A third party recently completed a full evaluation of Enterprises and the Board determined that it was prudent to proceed with the next step in the process of divesting itself of the subsidiary."
The Board established several objectives that had to be accomplished before they would consider selling Enterprises. They were:
* Any offer to purchase Enterprise must include plans for protecting the interests of existing members involved in racing these cars. This protection plan must include specifics regarding (but not limited to): production plans and new vehicle price controls, service and parts availability and pricing and Technical and homologation support.
* Any offer to purchase must clearly delineate the buyer's plan to respect existing contracts between Enterprises and: current suppliers and employees, existing Customer Service Representatives, corporate sponsors and existing contracts for sales and service/parts deals with current racers.
* A successful bid should include significant experience in race car production and race series support.
* Finally, all offers should specify in writing the exact terms of sale for Enterprises, including how much cash, debt and in-kind payment is included in the transaction.
All potential buyers need to perform their due diligence and be in a position to forward a sealed bid to Julow no later than August 31, 2006. Should an on-site visit of SCCA Enterprises (Centennial, Colo.) be necessary, it can be arranged through Julow's office as well.
A task force has been formed regarding the sale of SCCA Enterprises consisting of Jim Julow, Jeff Dahnert (SCCA CFO) and Board members Mike Sauce, K P Jones and R J Gordy. The task force has been charged to open all sealed bids submitted by August 31, review and evaluate all offers, and submit recommendations to the SCCA Board of Directors by no later than October 1, 2006.