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Offers significant growth opportunity through Off-Road Jeep and truck
aftermarket accessories to serve off-road enthusiasts
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Expected accretion to earnings per share for the full year 2017,
excluding purchase accounting/acquisition costs
MINNEAPOLIS--(BUSINESS WIRE)--
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161110006639/en/
Source: Polaris Industries, Inc.