By John Boothe
One of the largest snowmobile and all-terrain vehicle makers in the world announced Wednesday that it is being purchased for $247 million in cash.
Minneapolis-based Arctic Cat is set to merge with Textron and become of part of its specialized vehicles business, which is a leading global manufacturer of golf cars, utility and personal transportation vehicles, professional turf-care equipment, and ground support equipment.
Arctic Cat reported in November that the company of 1,600 employees had experienced a 22 percent dip in sales to $165 million in the fiscal second quarter of 2016 amid decreasing demand in the competitive powersports industry.
“Arctic Cat’s board believes that Textron’s offer delivers compelling and immediate value to our shareholders,” Arctic Cat president and chief executive officer Christopher Metz said in a statement. “This transaction presents increased opportunities for the business to leverage our combined scale, accelerate growth and enhance product innovation in ways that will benefit our customers, dealers, and employees.”
The announcement also stated that Arctic Cat will be maintaining its brand in the move as well as its current manufacturing, distribution, and operational facilities.
Textron, which is based in Providence, Rhode Island, is a multi-industry company with over $13 billion in annual revenues and approximately 35,000 employees. It is best known for its aviation brands such as Bell Helicopter, Cessna, and Beechcraft.
“We are proud of the progress our team has made to lay the foundation for Textron to continue taking this company forward,” Metz said. “Textron plans to build on Arctic Cat’s strong brand and history of innovation. We expect many Arctic Cat employees to benefit from expanded career opportunities as part of a larger, more diversified company.”
One of the largest snowmobile and all-terrain vehicle makers in the world announced Wednesday that it is being purchased for $247 million in cash.
Minneapolis-based Arctic Cat is set to merge with Textron and become of part of its specialized vehicles business, which is a leading global manufacturer of golf cars, utility and personal transportation vehicles, professional turf-care equipment, and ground support equipment.
Arctic Cat reported in November that the company of 1,600 employees had experienced a 22 percent dip in sales to $165 million in the fiscal second quarter of 2016 amid decreasing demand in the competitive powersports industry.
“Arctic Cat’s board believes that Textron’s offer delivers compelling and immediate value to our shareholders,” Arctic Cat president and chief executive officer Christopher Metz said in a statement. “This transaction presents increased opportunities for the business to leverage our combined scale, accelerate growth and enhance product innovation in ways that will benefit our customers, dealers, and employees.”
The announcement also stated that Arctic Cat will be maintaining its brand in the move as well as its current manufacturing, distribution, and operational facilities.
Textron, which is based in Providence, Rhode Island, is a multi-industry company with over $13 billion in annual revenues and approximately 35,000 employees. It is best known for its aviation brands such as Bell Helicopter, Cessna, and Beechcraft.
“We are proud of the progress our team has made to lay the foundation for Textron to continue taking this company forward,” Metz said. “Textron plans to build on Arctic Cat’s strong brand and history of innovation. We expect many Arctic Cat employees to benefit from expanded career opportunities as part of a larger, more diversified company.”