Hoop Cleared in Acquisition of GT Bicycles
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GT Bicycles Inc. said Monday that its proposed acquisition by the makers of Schwinn bicycles has cleared antitrust hurdles.
The $78.6-million transaction, which would create one of the world’s largest bicycle manufacturers, is expected to be completed later this quarter, pending shareholder approval and a review of proxy materials by the Securities and Exchange Commission.
Santa Ana-based GT would by acquired by Schwinn Holdings Corp., a unit of Questor Partners Fund LP. No layoffs are anticipated.
GT Bicycles also posted strong gains in earnings and revenue for the second quarter.
Net income for the three months rose 41% to $400,000, or 4 cents a share, from $284,000, or 3 cents a share, a year ago. Sales increased 14% to $57.7 million from $50.8 million. Net income for the first six months was $483,000, or 5 cents a share, down 56% from the $1.1 million, or 11 cents a share, for the 1997 first half. Sales were up 7% to $108.8 million from $101.9 million.
The company’s stock closed Monday at $7.53 a share, up 9 cents.
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