A U.S. firm with multiple brands in the utility vehicle market is set to add Minneapolis-based ATV and snowmobile maker Arctic Cat to its roster.
Providence, R.I.-based Textron Inc. announced Wednesday it has signed an all-cash merger deal to buy NASDAQ-traded Arctic Cat for $18.50 a share, or about $247 million (all figures US$).
Arctic Cat’s stockholders are expected to see tender offers for their shares by Feb. 7 at the latest, the companies said, noting the deal already has unanimous approval from Arctic Cat’s board.
“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,” Arctic Cat CEO Christopher Metz said in a release.
The deal calls for Arctic Cat to become part of the Specialized Vehicles business at Textron, an operating arm that already includes the Jacobsen, Cushman and Textron utility vehicle and accessory brands, among others.
The company’s Arctic Cat and Motorfist brands and its manufacturing and distribution sites will be maintained “with a focus on growing the business,” Arctic Cat said, noting it has “complementary” product portfolios with Textron in the recreational, utility and specialized vehicle market.
The merger, the companies said, will allow for “more aggressive investment in product development, dealer networks, marketing and customer service.”
Textron, whose operations outside the utility vehicle sector include Bell Helicopter, Cessna and Beechcraft, among others, recently rolled out a new outdoor recreational vehicle line under the Stampede brand.
Arctic Cat “provides an excellent platform to expand our portfolio, increase our distribution and create growth within our Specialized Vehicles business,” Textron CEO Scott Donnelly said in a separate release. — AGCanada.com Network