Huffy has signed a definitive agreement for the sale of its services to retail segment, which includes Huffy Service Solutions, Creative Retail Services and Creative Retail Services (Canada) to National Product Services Inc., a portfolio company of H.I.G. Capital, LLC. Under the terms of the agreement, National Product Services will acquire all of the assets, trademarks, other intellectual property, and equipment and will assume a number of agreed upon operating liabilities of the business. Subject to satisfactory completion of final due diligence, the transaction is expected to close before the end of April 2004.
Commenting on the decision to sell Huffy Service Solutions, Paul R. D'Aloia, Chief Executive Officer and President said, “Although services to retail has been an integral part of our business for the past several decades, recently Huffy Service Solutions has significantly expanded its activity in channels outside of the mass and sporting goods channels. In our on-going review of our business and product lines, we concluded that Huffy Service Solutions is not a key strategic component as we move to a single sporting goods platform, delivering branded sporting goods and related products into the mass, sporting goods and specialty channels. We are pleased that National Product Services has recognized the value of Huffy Service Solutions and the benefit of combining two premium services to retail companies.”