Polaris® Industries Completes Acquisition of Transamerican Auto Parts
November 10 2016 - 4:23PM
Business Wire
- Offers significant growth opportunity
through Off-Road Jeep and truck aftermarket accessories to serve
off-road enthusiasts
- Expected accretion to earnings per
share for the full year 2017, excluding purchase
accounting/acquisition costs
Polaris Industries, Inc. (NYSE:PII) today announced that it has
completed the previously announced acquisition of Transamerican
Auto Parts (TAP), the leading manufacturer, distributor and
retailer of off-road Jeep and truck aftermarket accessories, for an
aggregate consideration of $665 million, subject to customary
adjustments, financed through Polaris’ existing credit
facilities.
Polaris expects the TAP acquisition to contribute approximately
$100 million to the Company’s fourth quarter 2016 sales and
anticipates acquisition costs and purchase price accounting
associated with the acquisition of TAP to result in a negative
impact to fourth quarter 2016 net income of $15 million to $20
million, or $0.23 to $0.31 per diluted share. Excluding the effects
of the TAP sales contribution and purchase accounting/acquisition
costs, the Company’s earnings guidance for the full year 2016
remains unchanged from its previously provided $3.40 to $3.60 per
diluted share with sales expected to be down in the mid- to
high-single digit percent range.
The Company continues to anticipate the TAP transaction will be
accretive to Polaris’ earnings per share, excluding acquisition and
purchase price accounting costs, for the full year 2017. Polaris
will provide full year 2017 guidance that includes the impact of
the TAP transaction when the Company reports fourth quarter and
full year 2016 results. The Company expects meaningful annual cost
savings within three years following closing, primarily from
efficiencies related to procurement, distribution, and expanded
product offerings.
As previously announced, TAP will initially operate as a
distinct business unit reporting to Steve Eastman, Polaris’
President of Parts, Garments and Accessories.
For more details on the transaction, please refer to Polaris’
October 12, 2016 press release, which is available on
Polaris.com.
About Polaris®Polaris Industries Inc. (NYSE: PII)
is a global powersports leader with annual 2015 sales of $4.7
billion. Polaris fuels the passion of riders, workers and outdoor
enthusiasts with our RANGER®, RZR® and Polaris GENERAL™
side-by-side off-road vehicles; our SPORTSMAN® and Polaris ACE®
all-terrain off-road vehicles; Victory® and Indian Motorcycle®
midsize and heavyweight motorcycles; Slingshot® moto-roadsters; and
Polaris RMK®, INDY®, Switchback® and RUSH® snowmobiles. Polaris
enhances the riding experience with parts, garments and accessories
sold under multiple recognizable brands, and has a growing presence
in adjacent markets globally with products including military and
commercial off-road vehicles, quadricycles, and electric vehicles.
www.polaris.com
Except for historical information contained herein, the matters
set forth in this news release, including management’s expectations
regarding synergies and other benefits of the acquisition, and
future performance of Polaris, TAP and the combined companies are
forward-looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially
from those forward-looking statements. Potential risks and
uncertainties include factors such as anticipated tax benefits from
the acquisition may not be achieved by the Company; problems or
unforeseen costs may arise in integrating the businesses of the two
companies and the integration may not be successful; the combined
companies may be unable to achieve the anticipated synergies or
those benefits may take longer to realize than expected; the
businesses of the combined companies may suffer as a result of the
transaction including through disruption of relationships with
customers, employees or suppliers; increased competition and its
effect on pricing; the combined companies may not perform as
expected following the closing; Polaris’ ability to successfully
implement its manufacturing operations expansion initiatives, cost
reduction initiatives, product offerings, promotional activities
and pricing strategies against competitors; economic conditions
that impact consumer spending; product recalls; warranty expenses;
impact of changes in Polaris stock price on incentive compensation
plan costs; foreign currency exchange rate fluctuations;
environmental and product safety regulatory activity; effects of
weather; commodity costs; uninsured product liability claims;
uncertainty in the retail and wholesale credit markets; performance
of affiliate partners; changes in tax policy and overall economic
conditions, including inflation, consumer confidence and spending
and relationships with dealers and suppliers; and other risks
beyond the control of either party. Investors are also directed to
consider other risks and uncertainties discussed in documents filed
by the Company with the Securities and Exchange Commission. The
Company does not undertake any duty to any person to provide
updates to its forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20161110006639/en/
Polaris Industries, Inc.Media Contact:Kelly
Basgen, 763-519-1740kelly.basgen@polaris.comorInvestor
Contact:Richard Edwards,
763-513-3477richard.edwards@polaris.com
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