SANTA MONICA, Calif. (June 8, 2007) — HD Partners Acquisition Corp. has agreed to acquire all the professional racing assets of the National Hot Rod Association (NHRA) for $121 million.
Included in the assets are the NHRA Powerade Drag Racing series as well as a “broad set of rights” to commercialize the NHRA brand. HD Partners said the assets will be held in its wholly owned subsidiary named NHRA Pro Racing. The drag racing organization will remain a non-profit 501 (c)(6) corporation, the company added, and will retain all its non-professional racing, safety and educational activities and continue to be the sanctioning body for all NHRA racing activities.
As part of the transaction, HD Partners also will acquire four NHRA-owned race tracks, an additional long-term track lease in Pomona, Calif., and the NHRA headquarters building in Glendora, Calif. It also will own a video and photo archive chronicling the history of drag racing, including more than 20,000 hours of video and film.
Once the deal is done, Eddy Hartenstein, HD Partners chairman and CEO, will serve as NHRA Pro Racing's chairman and NHRA President Tom Compton will continue as president, CEO and a board member. Robert Meyers, HD Partners CFO, will take that position with the new subsidiary, while Peter Clifford, current executive vice president and general manager of the NHRA, will become its executive director.
Wally Parks, NHRA founder, called the acquisition “a monumental milestone in the 56-year history of the NHRA. By virtue of the agreements we have reached with HD Partners, we are positioning the NHRA Powerade Series for great future growth and success, while at the same time are assuring the long-term vitality of the NHRA.”
Santa Monica-based HD Partners is a year-old equity financing company, with $150 million in start-up capital. Mr. Hartenstein is the former CEO and chairman of DirecTV Inc.
Closing of the deal is subject to stockholder approval, regulatory clearances and other conditions, HD Partners said.