Updated:
Original:

Snowmobile and ATV maker Arctic Cat sold for $247M

The company employs 1,600 people in Minnesota.
Author:

Minneapolis snowmobile and ATV maker Arctic Cat has been acquired by a Rhode Island company in a deal worth $247 million.

Arctic Cat will sell its outstanding shares to Providence-based golf cart, aircraft and personal transportation maker Textron for $18.50 a share, it was announced Wednesday morning.

After recently moving into new headquarters at 500 North 3rd St. in the North Loop from its former home in Plymouth, Arctic Cat is expected to retain its presence in the Twin Cities, as well as its manufacturing facility in Thief River Falls and its distribution and operational facilities.

The company, which employs 1,600 people in Minnesota, will get to keep its "iconic" Arctic Cat brand.

Although takeovers can sometimes signify troubling times for a company, Arctic Cat CEO Christopher Metz said this merger is a positive one and will give the company the chance to grow.

"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," he said.

Arctic Cat will become part of Textron's Specialized Vehicles business, fitting in alongside the suite of ATVs already made by the Rhode Island company.

It comes after a tough trading period for ATV makers. Arctic Cat is itself in the midst of a turnaround strategy after a challenging business environment made more difficult – in winter 2015/16 at least – by a lack of snow in key markets.

In its most recent results, on Nov. 9, the company reported a net loss of $12.8 million.

Another major Minnesota ATV company, Polaris, has been similarly struggling after a year that included massive product recalls and costs associated with fixing a fire risk, the Star Tribune reported.

Next Up

two twelve medical center chaska GSV

Ridgeview cutting hours at 2 Minnesota urgent care locations

Hours of operation at a third location are also being shifted earlier.

Flickr - QFamily - Ben Jerrys

Latest to wade into Mpls. Question 2 debate is ... Ben & Jerry's?

The ice cream business said it supports the creation of a Department of Public Safety.

mickey moore driver's license shared

Mpls. candidate tries to 'set the record straight' about where he lives

Questions about Ward 9 candidate Mickey Moore's residency are quickly piling up.

Screen Shot 2021-10-21 at 1.49.16 PM

COVID-19 case rate drops in 51 of 87 Minnesota counties

Four of the 10 lowest case rates are metro-area counties.

unsplash - visitor patient doctor hospital emergency - crop

Allina mental health workers vote to unionize

Concerns over safety led the workers to unionize.

teacher, coronavirus, covid-19, school, classroom

Minnesota reports COVID deaths of teen student, 2 school staffers

Cases in schools rose again in the past week, though there are signs cases may have peaked.

Proctor football

Investigation of alleged misconduct on Proctor football team nears conclusion

The football team canceled its season and the coach subsequently resigned.

minnesota house of representatives

Minnesota House will continue hybrid operations, require masks in 2022

The Speaker of the House announced the plans in a memo to members and staff on Thursday.

autumn larson settlement

Minneapolis committee OKs $45K payout to woman shot by police during riots

She was hit in the face with a "less lethal" projectile while she was in her car trying to leave the protest.

Related

Arctic Cat recalling 1,400 ATVs

The Thief River Falls company is recalling the vehicles because the steering tie-rod can bend, potentially causing the driver to lose control. ATVs included in the recall have been sold at dealerships since February this year. The company is notifying registered owners.

Arctic Cat recalling 19,000 snowmobiles

The Thief River Falls company is recalling the vehicles because of an issue that can cause the driver to lose steering control. WDAZ says there have been four reports of malfunctions but no injuries. The recall includes the F, XF and M models sold between May 2011 and December 2011.

Cub Foods is set to be sold early next year

The grocery chain's parent company is looking to offload the store network.