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CALIFORNIA / News and Insight on Business in the
Golden State
| THE STATE: AUTO PARTS

Global Motorsport Ends Pact With Fremont

September 29, 1998| Bloomberg News

Global Motorsport Group Inc., the top independent parts distributor for Harley-Davidson motorcycles, said it ended its agreement to sell a majority stake to Fremont Partners for $104.8 million. Global Motorsport said it was not happy with the deal's financing conditions and that it will seek other opportunities. Fremont, an equity fund based in San Francisco, said in June that it planned to buy an 88% stake in Global Motorsport for about $134 million in cash and assumed debt, less than its original offer. Global Motorsport was under pressure from shareholders to sell. The Morgan Hill-based company is the parent organization for an international group of motorcycle parts makers, including Custom Chrome Inc. The Global Motorsport board unanimously decided that the "substantial reduction in price was not justified," Chairman Joseph Keenan said. The tender offer was subject to certain conditions, including the tender of at least 51% of Global's common shares. The company had about 5.58 million diluted shares outstanding as of July 31. Global Motorsport shares rose $1.75 to close at $15.25 on Nasdaq.

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