Dorman Products, Inc. Completes Acquisition of SuperATV, a Leading Supplier to the Powersports Aftermarket

Rhea-AI Summary

Dorman Products, Inc. (NASDAQ:DORM) announced the acquisition of Super ATV, LLC for $490 million in cash, with an additional earn-out of up to $100 million based on performance targets in 2023 and 2024. This transaction, finalized on October 4, 2022, was financed through a $500 million incremental term loan facility. SuperATV, founded in 2004, is recognized in the powersports aftermarket for its high-quality products. The acquisition aims to enhance Dorman's portfolio and strengthen its market position in the motor vehicle aftermarket.

Positive

• Acquisition of Super ATV for $490 million enhances Dorman's product portfolio.
• Potential earn-out of up to $100 million could drive further growth based on performance.
• SuperATV recognized for high-quality products, increasing Dorman's market competitiveness.

Negative

• Acquisition costs $490 million in cash, which may impact short-term liquidity.
• Transaction financed through a $500 million term loan, increasing debt obligations.

COLMAR, Pa., Oct. 04, 2022 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ:DORM), a leading supplier in the motor vehicle aftermarket industry, today announced that it completed the acquisition of Super ATV, LLC (“SuperATV”) for $490 million in cash at closing, plus an earn-out of up to $100 million in the aggregate payable over two years subject to certain performance targets being achieved in 2023 and 2024. The closing payment is subject to customary purchase price adjustments. The transaction was financed with a five-year $500 million incremental term loan facility obtained in connection with an amendment to the Company’s existing credit agreement.

An investor presentation that was previously issued in connection with the announcement of the acquisition containing additional information regarding the transaction remains accessible on Dorman’s website at DormanProducts.com under "Investor Relations."

About Dorman Products

Dorman gives repair professionals and vehicle owners greater freedom to fix cars and trucks. For over 100 years, we have been driving new solutions for the motor vehicle aftermarket, releasing tens of thousands of replacement products engineered to save time and money, and increase convenience and reliability.

Founded and headquartered in the United States, we are a pioneering global organization offering an always-evolving catalog of parts, covering light-, medium- and heavy-duty vehicles, from chassis to body, from underhood to undercar, and from hardware to complex electronics. See our full offering and learn more at DormanProducts.com.

About SuperATV

Founded in 2004, SuperATV employs highly skilled and industry expert men and women in all facets of design, manufacturing, sales and distribution. SuperATV’s leading family of proprietary brands includes Assassinator Tires, Assault Industries, Black Ops, EZ STEER, Gear Driven Performance, Intimidator Tires, Keller Performance Products, RackBoss, REV1, Rhino, SandCat, Terminator Tires, Warrior Tires, X300, and XR Optic. SuperATV is recognized in the powersports aftermarket for its high-quality suspension, steering, portal gear lifts, lighting, storage, vehicle protection, drivetrain, maintenance, accessories, and other product lines.

Investor Relations Contact

Michael P. Dickerson
Vice President, Investor Relations & Risk Management
mdickerson@dormanproducts.com
(517) 667-4003

FAQ

What is the acquisition value of Super ATV by Dorman Products?

Dorman Products acquired Super ATV for $490 million in cash, plus an earn-out of up to $100 million contingent on performance.

When was the acquisition of Super ATV completed by Dorman?

The acquisition of Super ATV by Dorman Products was completed on October 4, 2022.

How does the Super ATV acquisition impact Dorman's market position?

The acquisition enhances Dorman's product portfolio and strengthens its competitiveness in the motor vehicle aftermarket.

What financing method did Dorman use for the acquisition of Super ATV?

Dorman financed the acquisition with a $500 million incremental term loan facility.