BOULDER CITY, Nev. (March 18, 2008) — Polyurethane (PU) tire advocate Amerityre Corp. has acquired a significant portion of the manufacturing assets of Kik Technology Inc., an Oceanside, Calif.-based maker of PU foam tires that is going out of business.
The assets acquired include tire models and molds used by Kik to produce low-duty-cycle polyurethane foam tires, which are used in medical (wheelchairs and power scooters), industrial (hand dollies, factory carts, luggage handling equipment), recreation and sports (bicycles, mopeds, golf carts), and lawn, garden and turf (lawn mowers, wheelbarrows, snow blowers, farm carts) applications.
The acquired assets will help Amerityre produce a wider range of products for this market, according to President and CEO Gary Benninger.
Terms of the transaction were not disclosed.
Kik Technologies reported foam tire sales of $937,465 for the nine-month period ended Oct. 31, and $1.86 million for fiscal 2006, Amerityre said. Kik marketed its products under the tradenames Kik Tire and Carefree Tire.
In addition, William Knooihuizen, Kik's former president, has joined Amerityre in a senior account management position.
“I am looking forward to working with the Amerityre management team to integrate the Kik line of tires into the Amerityre product lineup,” Knooihuizen said.
For its most recent quarter, Amerityre reported a net loss of $1.03 million on revenues of $534,020. For the half year ended Dec. 31, the net loss was $2.12 million on revenues of $1.2 million.