ATC Venture Group Inc. (AMEX:ATC) announced that it has entered into an asset purchase agreement with K-W Manufacturing Company, a South Dakota-based manufacturer of patented snow plows, dozer blades, rock pickers, and other attachments for the skid steer loader market (“KW”), pursuant to which the Company has agreed to purchase from KW certain of its assets, including equipment, contracts and associated good-will in consideration for an aggregate purchase price of $500,000 and a royalty agreement of 5% of sales of the KW product line for each of the next 5 years.
According to Bob Davis, CEO of ATC Venture Group, "We've known KW for years and know them to be a superior manufacturer and supplier to the skid steer loader OEM’s, providing the industry with top quality plows, blades and other attachments. Their reputation in the industry is solid and their products are the best in the business. We look forward to having them join the ATC family."
Consummation of this acquisition is subject to the Company’s completion of its final due diligence investigation and audit, as well as other customary closing conditions.
About ATC Venture Group Inc.:
ATC Venture Group is the parent company to Simonsen Iron Works Inc., an Iowa-based fabricator, powder coat painter, and assembler of metal-based products since 1906. It previously owned Cycle Country Accessories, which for over 30 years was the industry leading designer, manufacturer and marketer of snow plows and other accessories for the ATV/UTV Powersports industry.
About K-W Manufacturing Inc.:
KW has been a leader for over thirty years in the design, manufacturing and marketing of patented snow plows, dozer blades, and other attachments for the skid steer loader market, Based in Sioux Falls, SD, the company has been the leading supplier to almost all of the Original Equipment Manufacturers of skid steer loaders in North America.