CART, Action Performance Sign Licensing Agreement
1 December 1998
Detroit, MI - Championship Auto Racing Teams, Inc. , the nation's leading sanctioning organization for open wheel racing, and its licensing arm, CART Licensed Products, L.P., announced Monday the signing of a long-term, exclusive die-cast and toy licensing agreement with Phoenix, Ariz.-based Action Performance Companies, Inc. (NASDAQ NM: ACTN).
Jimmy Vasser, Target/Chip Ganassi Racing
The rights granted under the agreement allow Action to create a line of collectible vehicles consistent with the detail and quality featured in its existing die-cast collectibles. The Company also will have the exclusive rights to market or sublicense a broad range of toy products, such as plastic and remote control vehicles, action figures, miniature helmets, board games, plush toys, and puzzles.
"We have made tremendous progress in our licensing business since we formed CART Licensed Products on January 1, 1997, and this deal with Action is another major step forward," said Andrew Craig, chairman and CEO of CART. "Action is the best partner with which we can develop these important products categories. Developing a successful licensing business is important to us not only for the potential revenues, but also for the market presence that licensed products create for the CART brand."
Action will market CART series products through its current domestic and international channels of distribution and through its newly acquired Internet and electronic commerce capabilities via www.speedmall.com. The exclusivity and long-term commitment between CART and Action further strengthens Action's global brand recognition and secures the Company's position as a worldwide leader in motorsports merchandise.
"This agreement heralds a long-term, mutually beneficial relationship that will capitalize on the growing popularity of the CART series and will enhance our expansion and exposure in international markets," said Fred W. Wagenhals, Action chairman, president and CEO. "CART is one of the fastest-growing racing series in motorsports and we anticipate a high level of enthusiasm and product demand from motorsports fans worldwide."
CART Licensed Products, which is based in Atlanta, is headed by Robert Hollander.
"Action Performance sets the standard for collectible die-cast and motorsports toys and their commitment to aggressively market CART products, makes this a terrific relationship," said Hollander, president of CART, L.P.
Championship Auto Racing Teams, Inc. completed its New York Stock Exchange initial public offering on March 10, 1998. CART owns, operates and markets the FedEx Championship Series, which is comprised of 20 races in five countries on four continents in 1999. Drivers such as Michael Andretti, Al Unser, Jr., and 1996 champion Jimmy Vasser race 900-plus horsepower, open wheel cars at speeds of more than 230 miles per hour on some circuits. CART also owns and sanctions the PPG Dayton Indy Lights Championship as well as the KOOL Toyota Atlantic Championship.
Action Performance Companies, Inc. is a worldwide leader in the design, marketing, and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast car replica collectibles, apparel, souvenirs, and other memorabilia. The Company markets and distributes its products through a variety of channels, including the 153,000-member Racing Collectibles Club of America (RCCA), trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.
Editors Note: The images displayed in this article (plus many more) can be viewed in The Racing ImageGalleries and the Visions of Speed Art Gallery.
