>From Sunday's (12/23/01) Hartford Courant.
Matt Murray
mattm@optonline.net
Racing School Sold To Investment Firm
December 23, 2001
By MATTHEW KAUFFMAN, Courant Staff Writer
The Skip Barber Racing School in Salisbury (CT) has been sold to First
Equity Group, a Westport investment firm that plans to expand the renowned
driving school's franchise.
The school, with base locations at Lime Rock Park and racetracks in
California, Wisconsin and Florida, was sold by Sports Capital Partners, a
New York firm that acquired the school in 1999 in a deal valued between $25
million and $30 million. Terms of the new purchase were not disclosed.
"We plan to continue to grow the business in its current markets, as well as
expand into new product offerings," said Aaron Hollander, co-founder of
First Equity, who will be chief executive of the newly formed Skip Barber
Racing School LLC.
Hollander said he would like to see the school develop more programs for
nonprofessional racing enthusiasts, and he sees a consulting role for the
company, helping race car manufacturers design vehicles. He said he also
wanted to increase the school's participation in stock-car and kart racing.
The school operates racing and performance-driving classes at more than 20
racetracks around the country. It has about 200 employees, and maintains a
fleet of more than 200 race cars, 110 production vehicles and 21
transporters.
Skip Barber's students have included four-time Winston Cup champion Jeff
Gordon, as well as one-third of all Indianapolis 500 drivers during the past
18 years.
The school, which opened in 1975, has grown into a $45 million business. But
revenue from its popular one- and two-day racing classes for corporate
clients declined with the economic downturn, and all but collapsed after
Sept. 11. The company has since cut salaries and laid off 10 percent of its
workers.
Hollander said First Equity has infused cash into the company and resolved
its financial problems. He said no more job cuts are planned.
First Equity Group, established in 1985, has interests in several
transportation-related businesses and operates the First Racing Team, which
competes at tracks around the country. And First Equity co-founder Michael
Culver, who will be chairman of the Skip Barber Racing School LLC, is
himself a winning race car driver.
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