|
|
MILFORD, Iowa – Cycle Country Accessories has signed a definitive agreement to purchase the assets of Simonsen Iron Works. The transaction will be closed by April 30, 2005. The final consideration that was agreed upon consists of $7 million in cash and $8 million in shares of the company's restricted common stock with a strike price of $6.50. The two companies' combined results will be reflected in the last five months of Cycle Country's Fiscal Year.
"We are buying nearly $10 million in hard assets along with Simonsen's proven earning power," said Ron Hickman, president and CEO of Cycle Country. "We invite our shareholders to view their impressive facilities at www.simonsenironworks.com."
"We have worked with Cycle Country's management since their inception in 1981 and because of that relationship, we have the utmost confidence in their ability to execute a seamless transition and provide strong leadership after the companies come together," stated Simonsen President, Alan Bailey. "We look forward to remaining shareholders in this combined entity."
Simonsen, based in Spencer, Iowa, is a fourth generation family-run business dedicated to developing high quality solutions for custom manufacturing needs since 1906. The services they provide include laser and plasma cutting, turret punching, tube bending, CNC machining, powder coating, and more.
