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

Group of people crowded around a snowmobile.
SnoRiders Insider Winter worshippers: Escape summer with Ski-Doo snowmobiles at Hay Days booth

Product Specialists along with Ski-Doo’s Brand Ambassadors, X-Team racers and accessory and clothing specialists will be on hand to answer questions

Snowmobilers pose on snowy trail.
SnoRiders Insider B.C. trails enhanced with new funding

The Province is providing nearly $200,000 to B.C. outdoor clubs to support the off-road recreation industry, enhance tourism opportunities and promote health

Polaris created a fully-functioning replica of the original Lunar Rover Vehicle (LRV).
SnoRiders Insider Polaris’ ultimate off-road vehicle: Lunar Rover replica commemorates Apollo 11 50-year anniversary

Polaris and the US Space and Rocket Center collaborated to build a working lunar rover replica

>
View all SnoRiders Insider articles