Release Date: 7/6/2004
Bad Toys, Inc., a Nevada Corporation engaged in the business of manufacturing and selling custom V-Twin motorcycles, custom street rods and providing brokerage service to custom cars, classic cars, and motorcycle owners, announced it has entered into a Letter of Intent to acquire the majority interest in American Eagle Manufacturing Company, Inc.
Bad Toys and American Eagle hope to enter into a definitive agreement by July 31, 2004, pursuant to which Bad Toys expects to acquire approximately 80 percent of American Eagle's issued and outstanding common stock. The purchase price will be paid in cash and by issuance of promissory notes and Bad Toy's common stock. The acquisition of American Eagle includes its subsidiaries, American Eagle Corp. and American Eagle Motorcycles Co., the manufacturing and marketing divisions for motorcycles and FunKarts.
Upon completion of the acquisition, Bad Toys will not only increase its gross assets by approximately $3 million but will also increase its clientele and its market share. "Bad Toys has been working on a M&A program throughout fiscal 2004," stated Larry Lunan, BTOI's president and CEO. "We are extremely excited about this opportunity."
The acquisition of American Eagle will enhance Bad Toys services, expanding its research and manufacturing capabilities with a 35,000 square foot production facility located in Carlsbad, California. "The combined forces of these two companies will create an important value-added addition to the growing family of companies in the Bad Toys group, with potential for opportunity both within and outside our domestic market," said Larry Lunan, BTOI's president and chief executive officer. Management believes that the acquisition of American Eagle's superior American-made product will continually earn market share and will help propel Bad Toys into an internationally successful company. As the company grows the demand for excellence will follow.
Lunan further commented, "We are very excited to add American Eagle into the Bad Toys family. This acquisition will allow Bad Toys to integrate its client demand with American Eagle's manufacturing capabilities. This powerful combination translates into giving Bad Toys' customers the top of the line in hotrods and customized motorcycles."
About American Eagle
American Eagle Manufacturing Company, Inc. is in the business of manufacturing proprietary custom high-end performance motorcycles. The Company's 35,000 square foot production facility is located in Carlsbad, California. American Eagle motorcycles targets highly exacting individuals who seek superior performance while at the same time demand quality and uniqueness in an American made product. From head to toe, all American Eagle motorcycles are completely hand-crafted and assembled in-house, with double powdered coated frames and available "trick" paint schemes. The wholesale/dealer price allows the dealer to offer a retail range of $19,200 to $70,000 depending on model and options. American Eagle motorcycles are listed in the NADA and Kelly Blue Book. Additional information regarding American Eagle Manufacturing Company, Inc. can be found at http://www.americaneaglemotorcycles.com/
The transaction is subject to execution of a definitive agreement, completion of due diligence and all requisite regulatory, shareholder, and third-party approvals. In addition, the purchase price is subject to adjustments at closing based on the net closing assets of American Eagle on the closing date, and other financial factors. There can be no assurance that a definitive agreement with respect to the proposed transaction will be reached or that the proposed transaction will be consummated.
For further information, contact Bad Toys, Inc., Larry N. Lunan, President and Chief Executive Officer, (423), 247-9560 or Investor Relations (561) 827-0637. Further information about the company may be obtained on its Web site at www.badtoys.net.
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