10 Reasons Why Arctic Cat Was Sold to Textron

Bringing Arctic Cat under the umbrella of an industrial giant like Textron might be just the deep-pocketed boost the struggling underdog needs to push into the motorsport big leagues.

Artist's rendtion of Arctic Cat building with sold sign sticking out the top.
In an all-cash deal, Arctic Cat recently announced it has been acquired by Rhode-Island based Textron Inc., a conglomerate whose products include Bell helicopters and Cessna airplanes. Photo: Arctic Cat

Bringing Arctic Cat under the umbrella of an industrial giant like Textron might be just the deep-pocketed boost the struggling underdog needs to push into the motorsport big leagues — or at least ensure survival, says one longtime observer of the Minneapolis-based snowmobile and ATV maker. This is according to industry analyst Robert W. Baird, equity analyst Craig Kennison, as he stated in a Minneapolis Star Tribune interview.

Here are 10 reasons he gave as to why Arctic Cat was sold to Textron: 

  • Larger competitors like Polaris Industries, Bombardier and Honda (ATV) are growing and dominating the snowmobile, ATV and motorsports markets.
  • A general softening of the ATV market over the last year or so.
  • Too much unsold inventory – Arctic Cat had troubles clearing dealer inventories.
  • Trouble supporting new product research-and-development
  • Facing an increasingly competitive sales and promotional environment
  • Challenges in upgrading its dealer network
  • Not having a big enough cost structure to absorb aggressive price discounting
  • Pressured by weak discretionary income in key rural markets
  • Did not have the resources necessary to deliver a suitable return on investment as a stand-alone enterprise
  • The company was struggling in a soft power-sports economy

On Wednesday, January 25, 2017, Arctic Cat announced it was been acquired by Textron Industries for $247 million in an all-cash deal. Textron Inc, is a Rhode Island-based conglomerate whose products include Bell helicopters, Cessna airplanes, Jacobsen Lawn Mowers and E-Z Go golf carts.

Read the entire Star-Tribune article here....

http://www.startribune.com/analysts-textron-might-have-the-deep-pockets-arctic-cat-needs/411816586/

Related Articles

Snowmobiles are parked in front of a log cabin. People gather on the porch to visit with each other.
SnoRiders Insider, Manitoba ISMA reveals intriguing snowmobiling stats and facts

We've compiled the most compelling facts and figures from the International Snowmobile Manufacturers Association's (ISMA) 2020 annual manufacturers update

A man stands next to his snowmobile on a mountain.
SnoRiders Insider 6 tips for selling a used snowmobile

Here are some things you can do to help make your snowmobile sell faster

by Addam Saruk, ASA Regional Director for Central Alberta
Snowmobilers ride in a line.
SnoRiders Insider, Manitoba A message from ISMA president Ed Klim

Ed Klim, president of the International Snowmobile Manufacturers Association, highlights positive trends related to snowmobiling this year

by Ed Klim, president of the International Snowmobile Manufacturers Association
>
View all SnoRiders Insider articles