According to a recent update filed with the SEC, SRAM confirmed that on June 7, the company entered into new credit facilities that were used in part to complete the buyout of Triatlantic. According to the filing, the $575.0 million received by Trilantic and its co-investors was in full payment for all of their interests in SRAM Holdings, LLC and consisted of $268.8 million in respect of the common participation right and $306.2 million in respect of the priority interests of the 3,640,000 Class A units held by Trilantic and its co-investors.

 

Following the refinancing, Trilantic and its co-investors have no remaining ownership of SRAM Holdings, LLC. According to the filing, net sales for SRAM were $146.5 million for the first quarter ended March 31, up 20.0 percent from sales of $122.0 million in the year-ago quarter. Management said sales in the OEM and aftermarket segments as a percentage of total net sales remained steady at 67 percent and 33 percent, respectively, in the three quarter, as compared to 66 percent and 34 percent, respectively, in the prior-year period. Management attributed growth of the market segment since 2008 to an increased internal focus and external marketing efforts, as well as general economic conditions.

 

The company said it increased prices on existing products during the most recent quarter. Gross margin increased slightly to 41.1 percent of sales for the three months ended March 31 from 40.9 percent of sales in the prior-year period, which reflects cost of sales remaining proportional to our net sales growth and continued growth in our aftermarket sales. Management attributed an increase in gross profit to higher volumes and pricing that led to our increase in net sales, as described above. Earnings for the quarter were $17.8 million, up 62.2% versus the year-ago period.