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Arctic Cat to Be Acquired by Textron in $247 Million Cash Transaction


(1/25/2017)

Arctic Cat in St. Cloud.

Press Release-

Arctic Cat Announces Agreement to Be Acquired by Textron in $247 Million All-Cash Transaction

Delivers substantial all-cash premium to Arctic Cat shareholders;

Textron committed to continued, long-term growth of Arctic Cat;

Combined businesses better positioned to be powersports industry leader

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 25, 2017-- Arctic Cat Inc. (NASDAQ: ACAT) today announced that it has signed a definitive merger agreement under which Textron Inc. (NYSE: TXT) will acquire Arctic Cat in a cash transaction valued at approximately $247 million, plus the assumption of existing debt. Under the terms of the agreement, which was unanimously approved by the Arctic Cat board of directors, Textron, through a wholly owned subsidiary, will commence a tender offer to purchase all outstanding shares of Arctic Cat at $18.50 per share in cash, representing a 40.7 percent premium to the closing price of Arctic Cat's common stock on January 20, 2017. Arctic Cat anticipates that tender offer materials will be provided to shareholders no later than February 7, 2017. The completion of the acquisition is subject to customary conditions and regulatory approvals.

“Arctic Cat’s board believes that Textron’s offer delivers compelling and immediate value to our shareholders,” said Christopher Metz, Arctic Cat’s president and chief executive officer. “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.” Textron is a multi-industry company with over $13 billion in annual revenues and approximately 35,000 employees.

Arctic Cat will become part of Textron’s Specialized Vehicles business, maintaining its iconic Arctic Cat brand, as well as its current manufacturing, distribution and operational facilities, with a focus on growing the business. Arctic Cat and Textron Specialized Vehicles have complementary product portfolios of recreational, utility and specialized vehicles. The combined businesses will be well positioned to be a powersports industry leader with a wider product line-up, and allow for more aggressive investment in product development, dealer networks, marketing and customer service.

Metz added: “We are proud of the progress our team has made to lay the foundation for Textron to continue taking this company forward. Textron plans to build on Arctic Cat’s strong brand and history of innovation. We expect many Arctic Cat employees to benefit from expanded career opportunities as part of a larger, more diversified company. On behalf of the Arctic Cat board and management team, we thank our dedicated employees for their hard work, commitment and pride in making Arctic Cat an enduring competitor and beloved brand in the powersports market. We are excited about Arctic Cat’s future.”

Advisors
Baird is serving as financial advisor and Fredrikson & Byron is serving as legal counsel to Arctic Cat. Shearman & Sterling LLP is serving as legal counsel to Textron.

About Arctic Cat
The Arctic Cat brand is among the most widely recognized and respected in the recreational vehicle industry. The company designs, engineers, manufactures and markets all-terrain vehicles (ATVs), side-by-sides and snowmobiles, in addition to related parts, garments and accessories under the Arctic Cat® and Motorfist® brand names. Arctic Cat Inc.’s world headquarters is located in Minneapolis, Minnesota. Its common stock is traded on the NASDAQ Global Select Market under the ticker symbol “ACAT.” More information about Arctic Cat and its products is available at www.arcticcat.com.

About Textron Specialized Vehicles Inc.
Textron Specialized Vehicles Inc. is a leading global manufacturer of golf cars, utility and personal transportation vehicles, professional turf-care equipment, and ground support equipment. Textron Specialized Vehicles markets products under the E-Z-GO®, Cushman®, Textron Off Road™, Jacobsen®, Dixie Chopper®, Ransomes®, TUG™, Douglas™, Premier™ and Safeaero™ brands. Its vehicles are found in environments ranging from golf courses to factories, airports to planned communities, and theme parks to hunting preserves.

About Textron
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, Textron Off Road, Textron Systems, and TRU Simulation + Training. For more information visit: www.textron.com.

The tender offer described in this communication has not yet commenced. Neither this communication nor any information incorporated herein by reference is an offer to purchase or a solicitation of an offer to sell any shares or any other securities of Arctic Cat Inc. (“Arctic Cat”). On the commencement date of the tender offer, Aces Acquisition Corp. and Textron Inc. will file a Tender Offer Statement on Schedule TO (“Schedule TO”), including an offer to purchase, a letter of transmittal and related documents, with the United States Securities and Exchange Commission (the “SEC”). Thereafter, Arctic Cat will file a Solicitation/Recommendation Statement on Schedule 14D-9 (“Schedule 14D-9”) with the SEC. Security holders are urged to read, carefully and in their entirety, both the Schedule TO and the Schedule 14D-9 regarding the tender offer, each as may be amended from time to time, and any other documents relating to the tender offer that are filed with the SEC, when they become available because they will contain important information relevant to making any decision regarding tendering shares. These materials will be made available free of charge on the “Investor Relations” section of Arctic Cat’s website at www.arcticcat.com when available. In addition, all of these materials (and all other materials filed by Arctic Cat with the SEC) will be available at no charge from the SEC through its website at www.sec.gov. Security holders may also obtain free copies of the documents filed by Arctic Cat with the SEC by contacting Investor Relations/CFO at Arctic Cat Inc., 500 North 3rd Street, Minneapolis, MN 55401; telephone number (612) 350-1791.

Cautionary Statement Regarding Forward-Looking Information
Statements in this press release regarding the proposed transaction between Arctic Cat and Textron, the expected timetable for completing the transaction, future financial and operating results, benefits of the transaction, future opportunities for Arctic Cat’s business and any other statements by management of Arctic Cat concerning future expectations, beliefs, goals, plans or prospects constitute forward-looking statements. Generally, forward-looking statements include expressed expectations, estimates and projections of future events and financial performance and the assumptions on which these expressed expectations, estimates and projections are based. Statements that are not historical facts, including statements about the beliefs and expectations of the parties and their management are forward-looking statements. All forward-looking statements are inherently uncertain as they are based on various expectations and assumptions about future events, and they are subject to known and unknown risks and uncertainties and other factors that can cause actual events and results to differ materially from historical results and those projected. Risks and uncertainties include the satisfaction of closing conditions for the acquisition, including the tender of a number of shares that, when added to the shares owned by Textron and its affiliates, constitutes a majority of Arctic Cat’s outstanding shares on a fully-diluted basis; the possibility that the transaction will not be completed, or if completed, not completed on a timely basis. Arctic Cat cannot give any assurance that any of the transactions contemplated by the agreement will be completed or that the conditions to the tender offer will be satisfied. A further list and description of additional business risks, uncertainties and other factors can be found in Arctic Cat’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016, as well as other Arctic Cat SEC filings. Copies of these filings, as well as subsequent filings, are available online at www.sec.gov and www.arcticcat.com. Many of the factors that will determine the outcome of the subject matter of this communication are beyond Arctic Cat’s ability to control or predict. Arctic Cat does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 



Comments (61):

Captain says:
1/25/2017 6:30:00 AM

In a word BOO!
ib_jigged says:
1/25/2017 6:41:00 AM

WTF
Joel Brosseau says:
1/25/2017 6:46:00 AM

This can only be a good thing. It's no secret that, as a business, Arctic Cat has experienced financial difficulty in recent years, probably due to the flat snowmobile market and perhaps a perceived lack of excitement on the ATV side. The shareholders were only going to absorb so much of it. Ideally, AC will retain their strong leadership team and brand identity, while gaining some much needed capital to reinvigorate product development. I'm sure that shiny new state-of-the-art engine plant was a big part of the deal, and could be made to leverage Textron's other brands.

Access to their $13.4B in annual revenue sure sounds nice when you're fishing for approval to build the successor to ProCross. It has to be at least in prototype phase now, just waiting for a green light!
VLADIMIR says:
1/25/2017 7:45:00 AM

Cat is eliminating the snowmobiles from it's product line/
Over the years they have taken on severe debt load with lack of new snowmobile purchases, and high amount of warranty-recall claims.
Their focus is now the ATV/UTV/WATER and Off-Road Industry.
It was to be expected with the "YAMAHA-CAT" deal.


3TCAT says:
1/25/2017 8:02:00 AM

Looking into Textron I see they own Bad Boy, E-Z Go Golf Carts, Cushman and numerous other companies this could(should) be a great thing for Arctic Cat. I remember at HayDays this past year they(Arctic Cat) said there would be 2 major announcements in late January well the 800ctec and the takeover I guess would be the 2 they were referring to.
Jim Dimmerman says:
1/25/2017 8:10:00 AM

John as you well know Textron is a BIG company. The good part is it may use Arctic Cat to expand in other markets. I love the idea that they will have fellow engineers in the aircraft industry. A lot of smart people in that sector. The snowmobile industry is pretty flat and hard to move especially with the weather constantly changing, mostly for the worse. I,m hoping for the best for all of my buddies up in TRF. If the lesson isn't working you've got to change the lesson..
Paterman says:
1/25/2017 8:12:00 AM

With the sale to Textron, will this affect the relationship with Yamaha and the Cat 4-stroke industry?
Mike Rypczynski says:
1/25/2017 8:28:00 AM

Hope textron fixes the leaky gas tank problems with all the cats this promblem has been going on for 15 years and to his date even the replacement tanks leak after a while Cheap Chinese plastic
Ton says:
1/25/2017 8:29:00 AM

Ctec 800 and Turbo 1000 golf carts. I don't golf. But if they made these I would.
MNCat says:
1/25/2017 8:29:00 AM

Any idea how this might affect Cats long tradition of racing relating to funding. Does this mean cat will now have more money to pull from for R&D?

Lots of questions here...
Cgs83544 says:
1/25/2017 8:56:00 AM

RIP Arctic Cat
Bill Nemanis says:
1/25/2017 9:26:00 AM

John, I worry for all the good engineers at Arctic who have been such a big part of the development of the snowmobile program. I know we don't have to worry about Roger but what of people like Brian Dick, Joel Halstrom, Greg Spaulding, Ryan Hayes, Kirk Hibbert, Al Shimpa and others. Often there is an evaluation of people and some are deemed non esential. I know this from my experiences at General Motors in the 2008-09 time frame. Although I didn't loose my job, many good, young engineers did. My hope is that all these good people can remain attached to the snowmobile program or are otherwise delt with in a fair and equitable way.

butarctic says:
1/25/2017 9:46:00 AM

When Bombardier sold their snowmobile division etc to Bain capital was it the end, i think this is great for Arctic
catman since 72 says:
1/25/2017 9:58:00 AM

Am I the only one who remembers that Textron once owned Polaris?
Johnny says:
1/25/2017 10:09:00 AM

Perhaps having way too many models in the snowmobile area was one reason for lack of sales (besides bad snow years). The cost of everything has become so extreme that many simply can't afford them anymore. Lack of a decent warranty on the products doesn't help either. I hope this works out.
KNagel says:
1/25/2017 10:17:00 AM

I am a little surprised about its evaluation and expected it to be valued more. Not that 247 million isn't a lot of money but a 585 million dollar annual revenue stream means that they won't have to work real hard to get their cash back. And some splice in the fact that Textron is a real manufacturer of some real high end Aeronautics. Cheers and Good Luck.
Matt says:
1/25/2017 10:32:00 AM

I think this will turn out to be a good thing for Arctic Cat. Textron has the money to take them to the next level! With bad boy in the mix, the off road side should benefit as well.
snowowl says:
1/25/2017 11:10:00 AM

Regardless of whether this turns out to be good or bad for Cat, it was inevitable; Cat can not continue independently while steadily losing money and share value with no bottom in sight. The quarterly reports that have been posted here have not been good for a long time. There will be some painful changes at Cat for sure, and some of it will be hard to understand, but, Arctic Cat has to change to survive so let's hope for the best.
catman says:
1/25/2017 11:13:00 AM

Would think it would be good but Arctic Cat is unique compared to the other snowmobile manufactures in that they have the most loyal customer base - right up there with John Deere. I would hope that Textron let's them operate in the same fashion while supplying them with things needed for efficient implementation of products as well as innovation. I'm actually glad Yamaha didn't buy Cat cause I think it's important to have a distinction between the different brands...maybe the Yami partnership will continue...maybe not. But there are certainly some bright sides to having other companies in the same umbrella in which to draw thing from.
Aray says:
1/25/2017 11:41:00 AM

I would expect economic conditions as well as conditions for U.S. manufactures to improve now that we have a President that is pro American mfg. instead of trying to crush the American worker/company as with past Administrations

I'm a huge fan of Arctic Cat so I'm hoping and praying this is for the best.
Leebone says:
1/25/2017 11:53:00 AM

Arctic Cat/Textron should launch a motorcycle to compete with growth brands like BMW, Ducati, and Triumph. Let Indian/Polaris fight with Harley and grab the position of America's ADV and sportbike leader.
Cheri Simanovski says:
1/25/2017 12:18:00 PM

We must all ,Choose, to see this as a positive decision. I worked at Arctic Cat, for 26 &1/2 years,until I retired in 2015. We have needed to do something for many years. I am choosing not to be sad...my hopes will be that many new products, will be made in Thief River Falls, and that the complete line of current People in higher Positions will , be canvassed as to their value, to the daily running of this new venture, in the life of Arctic Cat ...Cheers to what a very, very difficult, though necessary decision this was....
Eric says:
1/25/2017 12:29:00 PM

They own the company who builds Cobra Gunships and Huey's for the Marine Corps. If nothing else is exciting, that sure is.
Josh says:
1/25/2017 12:29:00 PM

Well I guess we now know why Country Cat and other Cat dealers started selling the Bad Boy Buggy's and EZGo carts. Whether this change is good or bad for AC? I guess only time will tell. I personally hope that this will give the dirt division the funds and resources to get more competitive with polaris and can am. Hopefully it will be a smooth transition into the new company. There seems to have been so many changes in the company since 2012, that they have been on the slow side for new product R&D. Hopefully the will get started on new projects right away.

MAKE ARCTIC CAT GREAT AGAIN!
K.W. says:
1/25/2017 12:38:00 PM

Long live The Cat, I hope this is for the best and not a death nell.
Greg Hallstrom says:
1/25/2017 2:10:00 PM

Sounds like 1982 again.

I have been considering buying a Bad Boy mower............. Maybe if they put the new 800 engine in it........
DGFriesen says:
1/25/2017 2:26:00 PM

This is a great news story for Arctic Cat and AC Cat's Pride Nation. Anybody that has been following their financials for the last few years could see things in TRF are not good. Take a look at Textron, just go to their website. This is a massive company driven by R & D, innovation, quality, and leadership in all the product categories they produce. $$$$ drives/supports all these things, and Textron has tons of it. Hang on tight, the next 10 years are going to be wildly exciting.
Dan Larson says:
1/25/2017 2:28:00 PM

catman since 72: You're not the only one who remembers that Textron
once owned Polaris as that was the very first thing that went thru my mind when I read that. I've been loyal to Cat since my grandfather sold them new at the farm in the 1960's and was devastated when the bankruptcy was announced after the '81 season thinking I would never get the chance to buy a brand new Arctic Cat. However with the rebirth came great excitement and since then I have purchased several new Arctic Cat sleds. I wasn't excited about the Yamaha relationship and have vowed not to own a Yama-Cat because of my purist view so it should come as no surprise that this doesn't excite me initially either however I will wait and see how this plays out. If they continue to offer 'American Made' sleds I will be there buying them new or used. I really hope as others have mentioned that the great people in TRF and elsewhere are taken care of because without them we wouldn't even be where we are today. Also as another mentioned with the change in leadership in this country the potential for many great things are just over the horizon. The emissions regulations really hurt the snowmobile industry financially so hopefully that will get better as well. Again, thank you to all the Arctic Cat employees, past & present, you've made a lot of people happy over many decades!!
Dpach says:
1/25/2017 2:57:00 PM

I look at this as a very positive thing for Cat. It immediately fixes a lot of financial issues. Every dollar spent on left over sled incentives is a dollar that can't be spent on R&D because Cat didn't have the available cash to do both. With the poor winters the last 3 yrs, R&D has suffered due to needed incentive spending on leftovers.

Cat now has an immense array of R&D departments to draw technology from and it is in Textron's best interest to provide it. Shared technology between companies is much more cost effective than each company developing their own version. Look at GM and Ford now developing transmissions together (why should each spend the same cash to end up at the same result; share the tech but share the costs).

The tough road ahead is keeping the Artic Cat brand loyalty and heritage as many times being a subsidiary of a much larger company can lead to the heritage being lost; thus loyalty being lost.

Personally I really hope they decide to take the brand to the next level. Over time, cover the entire industry (snowmobile, quads/SxS, and aquatic). Purchasing power should mean better quality parts (instead of cheap Chinese bearings). Also I may allow for a better factory warranty which Cat has lacked for a long time compared to Doo and Yami.
arcturusmine says:
1/25/2017 3:45:00 PM

I certainly hope all goes well for them. I've been on both sides of the buyout/merger. Hopefully Textron will let Arctic Cat be and run on their own. When we were bought out 9 years ago, we were told by the parent company that they loved the way we did things and they won't change anything. Six months later, they knew our business better then we did and ultimately ran the place into the ground. Our dealer network was killed, dealers had to take the entire line that the parent company had to offer. Most of our dealers walked away. They knew our machine better than we did, although they never spent a second in them to see what they could do. Its only now that we're getting back on our feet.

What worries me most is the fact that Textron already has a side-by-side and ATV line. Are they just buying Arctic Cat because of their machine, or only to get at the dealer network and then run their line through them? Not saying they will, I think the Arctic Cat ATV's are much bigger than their current line. Hopefully all will be fine and not a rerun of the Textron Polaris days.
Todd Olson says:
1/25/2017 3:49:00 PM

I remember talking to Christopher Twomey when they just started back up.
The pride that they all had with restating something from the ground up was infectious. I hope that all they did was not in vain. Customers actually like the fact that they are riders just like us. I hope they don't turn it into a cold corp. That people cant identify with. And turn there back on the snowmobile division.
Fred says:
1/25/2017 4:07:00 PM

This is not a done deal with Textron.
beenthere says:
1/25/2017 4:49:00 PM

Maybe this will change this company from one that oversold inventory and strong armed good dealers into trouble. Their business practices-even with the new regime has not changed. This company needs a good clean out from top to bottom.
Tom says:
1/25/2017 5:12:00 PM

COM-on man ! This is all good. Global resources, Global buying power. The iconic CAT is here to stay !
Flintstone says:
1/25/2017 5:38:00 PM

Major win for the motorsports industry that multi billion dollar company just dropped 250 million on a factory in northern mn. I want to get a job at cat now. This is going to attract major talent to the state of mn snowmobile industry. Cat has deep pockets now.
Flintstone says:
1/25/2017 5:45:00 PM

Could you imagine the pride of the top players at arctic cat knowing that these guys came from nothing else but a belief in something they thought was gonna go all the way and now see it thru!! This about the love of the sport and the desire to to dedicate yourself to something. I think the town of trf is pretty proud right now. They may not understand the game of hockey very well but they do understand how to operate a race sled factory!!
TMBH says:
1/25/2017 7:04:00 PM

I think there are pros and cons to this deal. First of all, it had to happen. The writing has been on the wall for several years. The only thing that kept Arctic Cat hanging on as an independent company for so long was pride. The sad part is it's really the end of an era. First with Arctic Enterprises, then Arctco and finally Arctic Cat Inc. it's always been an independent Minnesota based company. That's gone.

Second, Textron is a conglomerate and history or brand pride isn't how they do business. Business units must give good returns to remain in the fold. I do not doubt for one minute the dirt products are what caught their eye. How committed they will be to a low margin, low profit business like snowmobiles will remain to be seen. Also I'm not sure if this means the Arctic Cat-Yamaha partnership will continue, but my guess is it will for the near future. Yamaha didn't want Cat because of all the overlap, but if Textron divests the snowmobile division then Yamaha might be interested. This deal sort of creates a lot of questions and no answers until things close. At this point I feel Yamaha will eventually start building their own models again at some point or exit snowmobiles after inking an exclusive engine deal with Textron. Offering Arctic Cat sleds with Yamaha 4 Stroke power in addition to their 2 strokes gives them something Polaris and BRP don't have. It also would bring a lot of old Yamaha customers on board if Yamaha exits snowmobiles. There are just a lot of variables right now.

On the positive Cat will get a lot more access to capital as a division of Textron and that should help them build a better product. I fully expect this little deal to be quickly approved and then we'll just have to wait and see.
Sven says:
1/25/2017 7:45:00 PM

The dirt products will see great improvements from this, along with untapped tech.

I don't see the snow product changing much from what's already planned other than access to better test equipment and some technology that wasnt affordable before
Bill H. says:
1/25/2017 9:09:00 PM

The future for Arctic Cat looks grim. Cat will need to make money ASAP. Textron will not keep them around if they don't. Kevin Holleran and his crew will take what they have gained from Cat and put it to use in their current line up of Bad Boy, Ransomes, TUG, Douglas, Premier and Safeaero brands and close Arctic up. Or they will sell off the unprofitable lines IE snowmobiles to someone like yes you heard it here YAMAHA. Textron is not new to this they have been buying companies that have somthing they want or need and then reselling them if they are not profitable. It is a business deal and by no means a life line for Arctic Cat
Ronn says:
1/25/2017 9:18:00 PM

Bill is right! That is what Textron does is buys and sells companies. Keep in mind they started out as a synthetic yarns company and have bought and sold their way to were they are today.
jprider says:
1/25/2017 9:24:00 PM

This sux. One would have to assume C. Metz and the other big greedy boys on top will be richly rewarded for this while the CAT brand and the hard working people who built it are corkscrewed right up the Jimmy.
Mike F says:
1/25/2017 9:44:00 PM

I just thank God that the genius that is Chris Metz decided that a giant multi- million clown show move to downtown Minneapolis was a swell idea...He will rank up there with Irwin Jacobs, and Claude Jordan in the pantheon of people who if they ever show up in the 681, who's bodies will never be found...
Mavrick says:
1/25/2017 9:56:00 PM

Gezz i hope i'm wrong but to me this does not look good......what on earth has Chris Metz brought to the table for Arctic cat since he has taken control?? ZERO!!!
TMBH says:
1/25/2017 10:34:00 PM

I do agree with the comments that Textron will not keep a money loser around long. Remember they purchased Polaris in 1968. They rode it through the snowmobiling heyday of the 1970's. When things started to go south by the late 70's early 80's and it was losing money they were rid of it by 1981! They didn't even try or give it more then a year or two after the Indy line was introduced. Now of course there are all different people there today, but as a profit and stock price driven conglomerate I don't think their business model has changed. The sled division has to perform and perform quick because the minute it starts dragging down shareholder value it's going to be divested or closed down. As far as the sleds go a sale to Yamaha would have gave the division a brighter future. Pride is the only thing that keeps them in the sled biz. They get it just like Cat did. Textron could care less about history or pride. It's about turning a profit or flipping a business. I'm a Yamaha rider, but I ride an SR Viper so I'm with you guys in spirit. The new Thundercat and Sidewinder is an amazing collaboration by two companies that love snowmobiles and are snowmobilers.

We should stay positive, but this is an industry changer and the first time Arctic Cat is no longer an independent company in it's entire 50+ year history. The ATVs and SxSs are safe. The sleds? I guess we'll see.
stevo says:
1/25/2017 11:06:00 PM

YEs you got that right Chris Metz is a CLOWN a rich one that only cares about what is good for himself.
Mano says:
1/26/2017 10:00:00 AM

If we really want the specialty business products to survive and thrive, we need to petition the state legislature to allow factory direct purchasing. Much like Tesla is fighting with right now. This buyout is simply a way to boost Textrons product base and may just be the thing ACAT needs to move forward.
Cole Elrich says:
1/26/2017 12:55:00 PM

I've got the inside information on this. All the Arctic Cat SxS and ATVs will be re-branded as Bad Boy Off Road, Textron's premier consumer powersports brand.
Bummed says:
1/26/2017 1:10:00 PM

That's the end of Arctic Cat. Very sad. I'll miss them. Attach to nothing on this earth as it all turns to dust.
Kevin Koehler says:
1/26/2017 1:13:00 PM

Cole where did you get that info from? Sounds kinda quick!
JimR says:
1/26/2017 1:39:00 PM

I would say that now Textron has a premier brand in Arctic Cat and it will be expanded to military use as it is made in the USA, not Mexico. Cat is going no where but up with this move. Thank Claude for this mess. If they would have stayed with build to order only they would still be a stand alone company. No big deal belonging to a larger group though.
Onceacat says:
1/26/2017 2:07:00 PM

I have owned about 12 AC sleds in the past 20 years, though I no longer ride the brand. That said, I am sad to see this as I've spent a lot of time at the TRF factory, and visit this site often. An end of an era, for sure. The trends have been bad ('16 sales less that '06 sales, less cash, higher debt) and the market is tough. Hopefully the brand will continue, although it will be in a diluted form. Don't be too tough on Chris Metz, the die was cast several years ago, he was hired to find the best solution for the brand, and it appears he did, all things considered.
Catguy says:
1/26/2017 3:00:00 PM

Cole does not have inside information. That is a complete lie
Bulldog says:
1/26/2017 3:46:00 PM

It would be nice if we could get Sandberg's take on this. Hey John, why so quiet? Can you shed some light on this buyout from an Arctic Insiders viewpoint?
I Bleed Green! says:
1/26/2017 4:10:00 PM

Let's just assume that for the near future, the project goes on as the short term plan was scheduled.... Fine for a little while of course, but as was mentioned above, it is going to take improved cashflow, imporved bottom line, to keep Arctic Cat as we know it, to remain, as we know it to be. That means, making a better product that the consumer is willing to spend large chunks of cash on. Let's face it, these are not toys anymore, they are investments with large depreciating value. If Bad boy buggies or whatever uses / becomes the dirt line, i wouldn't feel bad, i mean combining the resources to make better products is great, as long as they sell. If Textron wants to be #1 in snowmobiles, then it can put money and resources into that product and become #1, i have no doubt. BUT.... it all depends on what the plan is going to be, which i am sure we will all find out in the future. I don't believe that they bought Arctic Cat to just liquidate the assets, and close up shop. If they do, then i guess we should all hope that Yamaha does step up and purchase the snow line, and maybe the MN operations and keeps them open. What the future holds is unknown, but we need to keep a positive attitude about this, being pissy about it isn't going to make anyone feel better.

I am sure nobody called John and asked if Arcticinsider was all for this buyout......
fred says:
1/27/2017 1:59:00 AM

The big question for me is: what happens to arcticinsider going forward?
fred says:
1/27/2017 2:03:00 AM

It would make sense for Yamaha to acquire the snow products.
PartsSeller says:
1/27/2017 6:21:00 AM

Arctic Cat is still gonna be the same, Text is just taking over our Debt, But look at it this way, they have there hands in a lot of things like air lines and tech companies, It's in there best interest to invest in Arctic and make the Brand better, Maybe they will use some of Arctic thec in there Bad Boys Brands too
mxsnow says:
1/27/2017 9:31:00 AM

Did not have a warm fuzzy feeling when Metz took over but the debt is and issue,I hope when Textron flips them they turn out as good as Polaris did when they were let go,a shock at first and now look at them. There is a lot of technology at Textron with the aircraft and engines they make,good thing Cat does have the customer loyalty they have,without a doubt number #1 in the industry for current tech and vintage/collectibles.
catman says:
1/27/2017 11:27:00 AM

Interesting enough, John has not commented on this as he usually does.
Bulldog says:
1/27/2017 11:39:00 AM

Catman - That is what I was thinking. It would be nice to hear his opinion of this buy out as long as everyone keeps in mind it is only his opinion and not the vision of Textron or AC.
Greg Hallstrom says:
1/30/2017 12:37:00 AM

Maybe now Roger can afford to buy some more cows for his ranch. And also another new John Deere tractor.

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