Dorman Products to Acquire SuperATV, a Leading Supplier to the Powersports Aftermarket

Highlights:

• Dorman Products to acquire SuperATV for $490 million in cash at closing, plus a two-year earn-out of up to $100 million in the aggregate based on achievement of 2023 and 2024 performance targets. Adjusted for estimated tax benefits, the transaction value before earn-out is approximately $445 million.
• SuperATV provides Dorman with a new growth platform by adding a leading independent supplier of aftermarket parts and accessories to the powersports industry who has a track record of growth fueled by new product innovation.
• The transaction is expected to be immediately accretive to margins and adjusted diluted earnings per share (“adjusted EPS”), excluding one-time charges and acquisition-related intangible assets amortization.
• In connection with the transaction, Dorman expects to obtain a $500 million incremental credit facility under the terms of its existing credit agreement.

COLMAR, PA – August 18, 2022 – (Motor Sports NewsWire) – Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM), a leading supplier in the motor vehicle aftermarket industry, today announced that it has entered into a definitive agreement to acquire 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 a two-year period subject to certain performance targets being achieved in 2023 and 2024. When adjusted for approximately $45 million present value of estimated tax benefits, the transaction value before earn-out is $445 million. The transaction is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close in the second half of 2022.

SuperATV is a leading independent supplier to the powersports aftermarket with a family of highly respected brands spanning functional accessories and upgrades, as well as replacement parts for specialty vehicles. SuperATV represents a unique opportunity to leverage Dorman’s “New to the Aftermarket” engine in a highly attractive and rapidly growing adjacent market, consistent with Dorman’s strategic priorities. SuperATV generated $211 million in net sales in fiscal 2021. Dorman expects the acquisition of SuperATV to be immediately accretive to margins and adjusted EPS, excluding one-time charges and acquisition-related intangible assets amortization. Additionally, Dorman anticipates significant opportunities to catalyze incremental…