News is Out
Challenger Acquires IMAR Group & Gekko Sports; Adds $12 Million To Annual Revenue Base
Wednesday January 31, 7:00 am ET
WASHINGTON, Mo., Jan. 31 /PRNewswire/ -- Challenger Powerboats, Inc. (OTC Bulletin Board: CPWB - News) today announced the acquisition of North Dakota- based IMAR Group (IMAR), manufacturer of Sugar Sand recreational jet boats and licensee of Gekko recreational tow boats. Challenger also acquired all of the assets and technology of Gekko Sports Corporation (Gekko). Unaudited consolidated 2006 revenue for IMAR was over $12 million. In consideration for cash, stock, and notes, the transaction was valued at approximately $7 million.
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Challenger CEO Laurie Phillips stated, "We are absolutely thrilled to have achieved this significant a milestone for Challenger. The addition of the Sugar Sand and Gekko brands gives us a complete and world class product line from jet powered boats to ski tow boats, family sport cruisers and "go fast" high performance boats, ranging in size from 14 to 33 feet."
She added, "Just as important, we've inherited an immediate installed base of over 100 dealers throughout the U.S., Canada, Europe, Asia and Australia, from which to now channel our sales growth. Additionally, we now maintain floor plan financing with several major financial institutions from which to offer to our dealers. We believe we are now on our way to establishing Challenger as a significant player within our segment of the recreational boating market."
Outgoing IMAR Group CEO Brad Williams commented, "Having worked closely with Laurie and the Challenger management team throughout this process over the past several months, we firmly believe we are leaving the legacy of the Sugar Sand and Gekko brands in extremely capable hands. As new shareholders of Challenger, IMAR's investors look forward to the successes which can now be achieved through the convergence of these two organizations."
Gekko President Mark Overbye will join Challenger as its new Director of Marketing. Challenger will continue to manufacture boats at both facilities located in Washington, Missouri and Fargo, North Dakota.
About IMAR & Gekko
The IMAR (International Marine and Recreation) Group builds Sugar Sand jet boats and Gekko tow boats. Privately held by a group of local investors, IMAR's mission is to bring innovative products and services to the marine industry and deliver those products through a dedicated dealer network. Sugar Sand boats are sold exclusively through its dealer network in the United States, Canada, Mexico, Europe, Australia, the Middle East and Japan. In 2006, Gekko's GTR 22 was selected as an official tow boat for the Barefoot World Championships at Lake Silverado, near Olympia, Washington. Sugar Sand and Gekko are currently manufactured at IMAR's 80,000 sq ft. leased facility in Fargo, North Dakota. For further information about IMAR please visit www.sugarsand.com and www.gekkosports.com.
About Challenger Powerboats, Inc.
Challenger Powerboats, Inc., designs and manufactures "go fast" offshore high performance boats and family sport cruisers that target the recreational power boat market. The Company holds the exclusive rights to the Duo Delta- Conic "DDC" hull for boats up to 40 feet in length. The DDC hull is a patented revolutionary design by world-renowned marine designer Harry Schoell. Proven world-class technology is incorporated into the manufacturing of the boats at Challenger's 65,000 sq. ft. facility located on the Company's 12 acre complex in Washington, Missouri. For further information about Challenger you may visit www.challengerpowerboats.com or www.sec.gov to view the Company's public financial information and filings.
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