Thule Racks Signs Letter of Intent to Purchase Sportworks Quick-Load Bicycle Racks

Sources close to the matter recently announced that Thule Racks has reportedly signed a letter of intent to purchase the Quick-load Bike Racks division of Sportworks Northwest, Inc. Sources close to the matter stated that Thule intends to buy the Sportworks Quick-load Bike Racks assets and will make the line available to all Thule dealers nationwide on the scheduled date of May 9, 2005.

Fred Clark, Thule, Inc. President, stated "We continue to be on the lookout for companies that fit in well with Thule's product and growth strategies. This acquisition fits all our criteria and the addition of the Quick-load products to the Thule line gives us the most comprehensive and innovative offering of bicycle racks in the industry." As outlined in the LOI, Thule Racks will distribute the Quick-load division of Sportworks Bike Racks with Sportworks branding included. However, Sportworks will continue to manufacture and distribute their Bike-Rack-for-Buses line under their current Sportworks brand. Thule Racks intends, over the next year, to fully integrate the Sportworks Quick-load Bike Racks into the Thule line with Thule branding.

President of Sportworks, Mike Reeves, stated "We are proud of our accomplishments of taking the Sportworks brand of consumer rack systems as far as we did. This opportunity with Thule will expand the distribution of our consumer products, while allowing us to concentrate on our original business of serving the transit market." Chris Dannewitz, Thule, Inc. VP of Business Development, added "Sportworks has always had very innovative products and they are the true originator of the platform bike hitch rack system. Their new T2 platform hitch bike rack and the Insta-Gater truck bed bike rack are fine examples of Sportworks products that will be worthy of the Thule brand name."

Sources close to the matter report that Thule and Sportworks intend to formally announce the agreement during the Sea Otter Classic bike racing weekend in Monterey, CA on April 14-17.