Issue link: https://read.dmtmag.com/i/208245
26 • November 4, 2013 • Powersports Business MOTORCYCLE www.PowersportsBusiness.com Calhoun purchases LeoVince USA Longtime exec turns acquisition into opportunity ers might be added before the company's first distributor catalog is released later this year. Calhoun hasn't capped how many manufacturers LeoVince USA will work with in the future, but he's confident that the 2013 partnerships will be capped at around a dozen. "I know we've got enough under our belt right now that we have a lot that we have to digest," Calhoun said. BY LIZ KEENER MANAGING EDITOR It was a well-kept secret. Geared Up Powersports, owned by longtime LeoVince USA executive vice president Tim Calhoun, quietly bought Fusetta LLC, the U.S. marketing and sales organization that sold and managed the LeoVince brand in the U.S. and Canada, on June 28. It was news that stayed relatively quiet until early October, when LeoVince USA announced the purchase. Calhoun now takes the role of CEO and president of the new LeoVince USA and retains an exclusive distribution agreement with Sito Gruppo Industriale, the parent company of the LeoVince family of brands. The reason for the secrecy? Calhoun wanted to show LeoVince USA's dealer partners, customers, race teams and fans that there would be no interruption in service. "We purposely didn't say much about it for a couple months because we wanted people to realize nothing is really going to change in the business they do with LeoVince," Calhoun told Powersports Business. Sito is in the process of streamlining its business, moving back to a manufacturing focus and partnering with third party vendors for distribution. When the com- TIM CALHOUN pany approached Calhoun with an offer, he jumped at it, as the acquisition was ideal for him personally and professionally. About a year ago, Calhoun began thinking about the future of his career, and he knew partial or full ownership in a company was his goal. He was willing to start a new company, but preferred to continue building on the business he had already established in his nine years at the helm of LeoVince USA. Calhoun had talked partial ownership with Sito, so when the opportunity to purchase the entire American arm of the company came up, he was glad to take it. "The opportunity was there. It worked for them; it worked for me," Calhoun said. LOOKING INTO THE FUTURE LeoVince USA's distributorship will be growing now that Tim Calhoun has taken ownership. Three new brands were added to the lineup at AIMExpo in Orlando. EXPANDING DISTRIBUTION Now Calhoun is focused on growing his company and expanding on a distributorship that began about a year ago. BMC Filters became the first LeoVince USA-distributed brand in 2012. From then until this October, the now LeoVince USA Specialized Product Distribution, has picked up six other brands: Airoh Helmet, USWE Hydration Packs, Vortex Products, GPR Stabilizers, Dion Devices and Bridgestone Racing Tires. Three more LeoVince USA-distributed brands were announced at AIMExpo, including TechSpec and VARTA Powersports, a new brand of batteries from Johnson Controls. The batteries, which were featured in the Oct. 7 issue of Powersports Business, are spill-proof and are delivered to dealerships fully charged. "We think it's going to be, quite frankly, the best battery on the market, as far as motorcycle and ATV and UTV," Calhoun said. VARTA's 16 SKUs cover 80-90 percent of motorcycles on the market, and LeoVince USA will allow dealers to carry the full spectrum of VARTA batteries with a minimal investment. Calhoun said the VARTA partnership, backed by $42 billion Johnson Controls, sends a good message about how other companies see LeoVince USA. The company has a close working relationship with all of the manufacturers for which it distributes, which is unique because of the size of LeoVince USA. "We offer a full partnership with the manu- facturers. We'll discuss what we're selling, how we're selling, who we're selling to," Calhoun said. The brands LeoVince USA has lured so far include those that the company turns to itself, whether it's the company's employees or race teams. Many of those brands have been underrepresented in the past. "We wanted to better serve our dealers with brands we like, that we use," Calhoun said. Adding brands other than LeoVince exhausts and carbon fiber protective pieces has allowed LeoVince USA to expand into new markets. The company is now playing in the automotive and bicycle industries due to partnerships with its manufacturers. Though diversifying is a goal of LeoVince USA, Calhoun is cognizant of not picking up brands just because they can help the company expand into other markets. "I don't want to go after a brand just because I want to do something else in auto or bicycle. I just want to go after brands because they're great brands," Calhoun said. Though powersports remains at the heart of LeoVince, expanding into other segments allows the company to offset some of the more volatile turns of a need-based market. "We're just looking to build a little bit broader foundation to make sure we build a very, very stable base for this company," Calhoun explained. LeoVince USA now has 10 brands under its distribution. One or two more manufactur- Because Calhoun has led LeoVince USA since the company launched in California nine years ago, the transition to ownership has been seamless. Many proven processes are already in place, so big changes don't need to be made in the immediate future, but some are coming down the pike. Shortly after revealing the sale in early October, LeoVince announced it had hired four new employees and promoted five others. The company is also looking to hire a new vice president of sales and to make changes in how its products are sold to dealers. "We are driving toward adding outside reps for the first time, so we are looking at what is going to be the most intelligent way to expand our company," Calhoun said. "We're being very, very methodical." Though Calhoun's Geared Up Powersports is keeping the LeoVince USA name on the distribution company for now, that could change in the future. A play on the Specialized Product Distribution portion of the name and LeoVince USA's SpeedMob racer affiliation could factor into the new name. But for now, the LeoVince USA name will stay to appease dealers, customers and fans. "There's value to that name, and I really didn't want to shake the tree too hard," Calhoun said. The company made a big public presence with its new ownership and distribution model at AIMExpo in mid-October. Its goal was to present the new LeoVince USA to the industry, encourage more dealerships to distribute its products and introduce its new manufacturer partners. The message for the show is a message LeoVince USA wants to send going forward. "We're going to meet your needs; we offer excellent customer service, and we're good at what we do; we want to help your business," Calhoun said. PSB A new player on performance exhaust front Magnaflow teams up with Arlen Ness for V-twin entry Magnaflow, a performance exhaust manufacturer with a longtime presence in the auto industry, announced a new partnership with Arlen Ness Motorcycles to manufacture and sell a complete line of co-branded exhaust products. Known as Arlen Ness by Magnaflow, the highperformance, high-quality, made in the USA exhaust systems will be designed by Arlen Ness for American V-twin motorcycles. The new product line made its world debut on the National Geographic Channel's "Let It Ride" series starring Zach Ness in October. Magnaflow has been a leader in exhaust performance, technology, design and manufacturing for more than 30 years. Arlen Ness is an icon in the custom motorcycle world with a 40-plus year his- P26x28-PSB14-Cycle.indd 26 tory of building custom bikes and high end parts and accessories. Motorcycle industry veteran Chris McGee joined Magnaflow earlier this year, and serves as the director of the company's motorcycle division from its Rancho Santa Margarita, Calif., headquarters. Arlen Ness has been producing custom motorcycles and high end, trend setting parts and accessories for Harley-Davidson, Victory and Indian motorcycles for more than 40 years. Arlen Ness now turns his talents to designing a complete line of co-branded exhaust systems. Magnaflow, with its extensive experience and expertise, will manufacture, market and sell the new Arlen Ness by Magnaflow exhaust line worldwide. "Magnaflow is thrilled to partner with the legendary Arlen Ness," McGee said. "With Arlen's trend-setting, timeless designs and Magnaflow's R&D, engineering, manufacturing and customer service capabilities, we have combined for one of the most powerful product launches in recent memory. Arlen Ness and Magnaflow, two world class brands, partnered to deliver the highest possible quality and performance exhaust products for your motorcycle." "I am very excited about the new Arlen Ness by Mag- Arlen Ness Motorcycles, with Zach, Arlen and Cory Ness at the helm, has designed a co-branded exhaust system known as Arlen Ness by Magnaflow. naflow exhaust line," Arlen Ness said. "Cory, Zach and I have been working to put these pipes on your bike." together on some really exciting designs that look "On this season of 'Let It Ride' we built and sound amazing. I can say the industry has some killer bikes with great craftsmanship never seen anything like the new Arlen Ness by and some great parts," said Zach Ness, host of Magnaflow exhaust line. You are going to want the series. PSB 10/30/13 12:51 PM ww D V se BY In pro Du sw inVW Fin bu the ma Ser No ho en an Ch Am of dev ne C Joh Ca inf ne tro fla as ser Ca po