A longstanding customer-vendor relationship between S&S and Flathead Power helped facilitate the deal for S&S. Senior Manager of Race and Customer Services, Charlie Hadayia, and Business Development Analyst, Tom Smith, brought the opportunity to the attention of S&S president, Brett Smith, where it was quickly determined to research the opportunity and make an offer. The deal closed today, July 25th, with Hadayia “on the ground” in Louisiana to package and load all the assets for shipment to the S&S facility in Viola, WI.
Since the fall of last year, S&S has been researching and pursuing opportunities to expand their product line and their overall market penetration. Flathead Power, a company that services classic/vintage engine lines and components dating back to 1936, was a perfect compliment for the S&S product line and brand.
S&S Director of Business Development, Michael Scaletta stated, “This is an exciting time for S&S with the purchase of Flathead Power. The acquisition of this Flathead Power’s assets and trade-name will allow S&S to sell complete engine assemblies and aftermarket components from 1936 year groups through 2007.” Scaletta continued, “Few—if any—companies worldwide have, or will have, the breadth of coverage for v-twin performance aftermarket parts that we will following this deal. The classic/vintage market has been underserved, with pent up demand. S&S is committed to servicing this demand while producing quality Proven Performance® products with a high level of customer service.”
“Some time ago, the S&S board agreed to establish a business development department to look at new opportunities for the company and this acquisition—our first in nearly 50 years of business—is the result of the formulation of that department,” said S&S president, Brett Smith. “I want to thank Charlie and Tom for their insight, the team that went down there to investigate this opportunity, and Michael for working out the details for the closing.” Smith went on to say, “We are very pleased to have worked out this deal with Doug and John [Dilsaver—former owners of Flathead Power] and we are committed to further developing the products they have traditionally offered under the existing Flathead Power brand—something we value and we believe the market values. Additionally, we believe that our trained global dealer network will be a necessary and valuable asset in promoting, selling, and servicing these classic/vintage products worldwide.”
Since S&S currently plans to maintain the Flathead Power brand, it will redesign and update the Flathead Power website, maintain the address, and link it both to and from the S&S website. Additionally, unlike the S&S website where forum groups have been eliminated, the Flathead Power website forum will remain in place for the foreseeable future.
Due to low volume nature of this niche product line and the anticipated technical support requirements, S&S intends to offer this product directly through its domestic dealers and through select international distributors only.
S&S plans to reintroduce the Flathead Power product line at the V-Twin Expo in Cincinnati in early February, 2008 with availability during April, 2008.