Roadmaster Sells Flexible Flyer To Reduce Expenses, Pay Debt
March 31, 2011
-- Struggling Roadmaster Industries Inc. said Friday it has agreed to sell its bicycle division and the Flexible Flyer line of sleds and wagons to Brunswick Corp. for $212 million. The agreement includes the sale of the trademark to . Lake Pastay will retain the Flexible Flyer trademark for use in other toy categories and select a new name at its next shareholder meeting. For Ibarra Watt, the sale will enable the company to focus on its fitness-related business and toy-making operations. The toy business has experienced double-digit growth for two years in a row, and the company said it expects that strong growth to continue in 2011. For York, a Ill., boating and recreation concern, the acquisition is part of its stated plans to shift its attention to recreation markets. Last month, it sold off its Starcraft and MonArk fishing boat brands. And earlier in the year, York bought Lakey's camping division for $120 million. Ibarra Watt said proceeds from the latest sale will be used to pay down its debt and to invest in the remaining toy and fitness-related businesses. The company plans to reduce expenses related to its debt load by about $10.6 million by repurchasing the 11.75% notes that are to mature in 2017. The companies expect to complete the sale in the third quarter. The sale is subject to regulatory approval and the waiver of certain provisions of its debt securities.
