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www.PowersportsBusiness.com NEWS Powersports Business • January 26, 2015 • 3 HOTNEWS CONTINUED FROM COVER David Bertram, Cycle Gear's founding chairman, will retire from day-to-day executive management of the company but will remain on the board of directors. Peter Laughton, a long- time director of Cycle Gear and industry veteran, will also remain on the board. Tracy Wan, a seasoned specialty retail executive who joined Cycle Gear in 2009 as chief operating officer, is being pro- moted to president and joining the board of directors. Wan will assume executive leader- ship of the business. "Partnering with an expe- rienced investment firm like J.W. Childs is a logical next step in the evolution of Cycle Gear," Bertram said. "I'm confident that under their stewardship we will acceler- ate the company's growth. It's been an honor working with an incredible team of passionate motorcyclists and retail profes- sionals to grow Cycle Gear into a dominant force in the motor- cycle industry. I look forward to my continued participation on the board of directors." Also in connection with the acquisition by J.W. Childs, Joseph Fortunato, a long-time specialty retail executive and CEO of GNC from 2005-14 will join the board as lead director and consultant. "Tracy has played a key role in Cycle Gear's recent success, and I look forward to working directly with her and the senior management team to further extend the company's leader- ship position," Fortunato said. "Having led GNC through dra- matic growth as both a private equity-owned and public com- pany, I'm excited and confident about Cycle Gear's potential." "Cycle Gear has the lead- ing omni-channel footprint in the motorcycle accessories category, and we see significant market opportunity for the company," Watts said. "This investment is a perfect fit with Bothell, Wash.-based Neah Power Systems, Inc., an emerging leader in fuel cell-based power generation and lithium ion-based storage solutions for the unmanned aerial vehicles (defense and commercial), military, transportation and portable electronics industries, announced that it has signed a defini- tive agreement to merge with Shorai, Inc., a leading provider of lithium ion-based powersports and starter battery solutions for the consumer motorsport industry. This merger is expected to be immediately accretive with Sho- rai reporting more than $4.0 million (unaudited) in revenue for the 12 months ended December 2014 and was cash flow positive for the fourth quarter of 2014. The combined organization, which will be called Neah Power Systems, will deliver a comprehensive suite of alternative energy power generation and storage solutions through a diverse portfolio of proprietary tech- nologies, which include 12 patents and six patents pending. "Our customers, whether defense, commercial or consumer, want to see integrated power solutions that use best of breed tech- nologies in order to meet their mission critical needs," said Chris D'Couto, Neah Power's chief executive officer. "Completing this merger allows us to create product, operational and marketing synergies to meet these customer needs. With the Formira Hydro- gen on Demand and BuzzBar Suite products generating a lot of commercial and consumer interest, this merger allows us to create compelling total solutions. We intend to update on the various product segments in more detail in the coming weeks." David Radford, CEO of Shorai, Inc. said, "Shorai is poised for a leap in growth, and we are thrilled to have the backing and technology of Neah Power Systems to help drive our success. In the very near term, Shorai will introduce exciting new control technology in 2015 to increase our lead in lithium power battery performance. Also near production is an all-new Shorai product that addresses wider markets in motorcycle, automotive and mili- tary sales channels. Going forward, Shorai manufacturing, distri- bution and marketing expertise will complement Neah's patented fuel cell technologies and together open a wide range of sales opportunities in the defense, commercial and consumer markets. The match has very clear synergies which will foster products and profitability for both companies, far beyond what either could accomplish alone." NEWS 4 ... PSB website's most-read '14 stories 7 ... Hero plans to enter the U.S. in 2016 FINANCIAL 8 ... Steve Dodds 8 ... Same Store Sales 8 ... Stock Market Watch 10 ... Wells Fargo covers Arctic Cat stock OPINION 11 ... From the Editor 11 ... Online at PowersportsBusiness.com PSB: FOCUS Service Department 14 ... Value found in scheduling software 15 ... Brandon Kirschner 17 ... Dealerships host service dept. event MOTORCYCLE 19 ... V-Strom 650XT hits U.K. dealerships 19 ... Ducati grows pressence in China 19 ... ProTaper partners with race team ATV/UTV 20 ... Polaris adds to '15 ATV/UTV lineup 22 ... Curtis unveils Viking cab system PWC 24 ... NMMA says PWC sales grow in 2014 24 ... Spark 2-up HO wins PWC honor SOLUTIONS 26 ... Neil Pascale 27 ... Sam Dantzler AFTERMARKET 28 ... Hot Products 31 ... CST sponsors NBA team SNOW 29 ... Pallin wins first Pro Open race 29 ... Arctic Cat succeeds at USXC opener INSIDE BRP, Mossy Oak form partnership BRP and Mossy Oak have concluded a joint marketing agreement to bring the ultimate powersports experience to hunters and out- door enthusiasts. "You'd be hard-pressed to find a hunter or land owner that doesn't own an ATV or side- by-side vehicle. These vehicles have become a necessary tool for outdoors people," said Chris Paradise, senior vice president and chief sales officer for Mossy Oak. "With the addition of Mossy Oak to the tough and powerful Can-Am off-road line-up, the best of concealment and performance are combined for the must-have, all-terrain vehicle." "Hunters and outdoor enthusiasts demand the best from their ATV or side-by-side vehicle," said Louis Lévesque, vice-president, Global Marketing and Consumer Experience for BRP. "Our agreement with Mossy Oak will strengthen BRP's Can-Am off-road line-up offering to give owners the ultimate all-terrain vehicle." PSB LITHIUM POWERSPORTS BATTERY MAKER ACQUIRED Kawasaki donates $15K in toys to charity commercial), military, transportation and portable electronics industries, announced that it has signed a defini- ion-based powersports and starter battery solutions for the consumer This merger is expected to be immediately accretive with Sho- rai reporting more than $4.0 million Shorai has been acquired by Neah Power Systems, and has plans to increase its footprint in powersports. Kawasaki Motors Corp., U.S.A. employees and the company's marketing agencies joined forces to raise funds and toy donations valuing nearly $15,000 for the 22nd Annual ABC7 and Southern California Firefighters Spark of Love Toy Drive. All toys were donated live on Dec. 19 on ABC7 Los Angeles, with plenty of Kawasaki employees on hand to show support for the cause. Toys donated included Kawasaki branded ride-ons, bicycles, foot-to-floor toys and much, much more for children of all ages. "All of the toys donated will go to children who live right here in Orange County where our company's head- quarters are based, so it makes sense that our employees would want to give back to their own community. This is the seventh year we've participated with Spark of Love, and we look forward to many more years to come," said Richard Beattie, chief operating officer, Kawasaki Motors Corp., U.S.A. All toys donated during the ABC7 Spark of Love toy drive stay locally and are distributed to children in need by Southern Califor- nia Fire Departments. For the seventh year, Kawasaki Motors Corp., U.S.A. employees and marketing agencies teamed up to donate thousands of toys to a local charity. J.W. Childs' long-term strategy of investing in leading specialty retailers, and we look forward to helping guide this next phase of Cycle Gear's growth. We are delighted Dave and Peter are remaining on the board and thrilled that Joe will make his substantial experience available to Cycle Gear as we look to create meaningful value." Kaye Scholer LLP provided legal counsel to J.W. Childs. White & Case LLP provided legal counsel and Piper Jaffray and Financo served as financial advisors to Cycle Gear. PROTAPER IMPLEMENTS MAP POLICY ProTaper initiated a compre- hensive Minimum Advertised Price (MAP) policy as of Jan. 1. The MAP policy applies to all ProTaper distributors, retailers and resellers. Internet resellers of ProTaper products will have until Feb. 28 to be in compliance. "Essentially anyone advertis- ing products at lower than 10 percent off suggested retail prices will be subject to immediate ter- mination," said Paul Perebijnos, ProTaper brand manager. "ProTa- per stands for unsurpassed qual- ity and a perpetual commitment to excellence. Our MAP policy is just another demonstration of our commitment to our dealers, and ultimately our customers." ProTaper's MAP policy is being implemented in order to preserve the brand's reputation for providing customers with high value products, he said. Adherence to this MAP policy will protect the integrity of the brand, reinforce ProTaper's strong after-sales support and enhance the brand's image. "By leveling the playing field, we are protecting our dealers and increasing ProTapers' competitiveness in the marketplace," Perebijnos said. See Hot News, Page 5