NEW YORK, N.Y. and POWAY, Calif., Feb. 23, 2004 – Falconhead Capital, a private investment firm specializing in leisure-, lifestyle-, media- and sports-related businesses, today announced that it has acquired National Powersport Auctions (“NPA”), the nation’s largest auction company focused on the powersport industry. Financial terms of the transaction were not disclosed. Both companies are privately held.
Founded in 1990, based in Poway, California (near San Diego), and with total 2003 auction sales of more than $100 million, NPA auctions repossessed, recovered and salvaged motorcycles, all-terrain vehicles (ATVs) and personal watercraft exclusively to powersport dealers. In addition to Poway, the company operates a second facility in Austell, Georgia (near Atlanta). NPA forms a unique link between its suppliers—finance and insurance companies seeking to maximize their recovery from repossessed or recovered powersport vehicles, and its customers—powersport dealers seeking an ongoing supply of such vehicles for resale to end customers.
David Moross, Chairman and Chief Executive Officer of Falconhead, said: “NPA is the unquestioned leader in the U.S. powersport auction business, with an 80%-plus market share in its rapidly growing segment of the $4 billion U.S. consignment industry, and strong, long-term relationships with both its suppliers and its customers. We look forward to working closely with Cliff Clifford and his colleagues on the NPA management team to build the value of this unique enterprise for customers, dealers, and our investors.”
Mr. Clifford, who co-founded NPA (originally known as Cycle Express, Inc.) with Andy Lomas and several members of the Lomas family, will head the company as President and CEO. Mr. Clifford said: “We are very pleased to be partnering with David Moross and his colleagues at Falconhead Capital. They clearly understand our business model and the importance, in that model, of maintaining outstanding supplier and customer relationships. Moreover, they share our vision of finding new ways to build the value of those relationships for everyone concerned, such as by expanding our auction services to the Midwest and adding auction locations elsewhere around the country.”
Madison Capital provided senior debt financing for the transaction and also has an equity participation.
Falconhead Capital LLC (www.falconheadcapital.com), whose principal fund is Sports Capital Partners, L.P., is a private investment firm established in 1998 to provide investors with significant long-term capital appreciation by investing globally in leisure-, lifestyle-, media- and sports-related businesses. The firm's investment partners include the California Public Employees' Retirement System (CalPERS), the nation’s largest public pension fund, which has committed to invest a minimum of $122 million in Falconhead funds. Falconhead’s investment strategy is also backed by its strategic partner, IMG, the world's largest sports marketing and management firm. Falconhead is headquartered at 527 Madison Avenue, 10th Floor, New York, NY 10022; telephone: 212-634-3304.
Roy Winnick or Mark Semer
Kekst and Company
212-521-4842 or 4802