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ARCTIC CAT TAKEN OVER

Struggling US powersports manufacturer Arctic Cat is being acquired by American specialised vehicles giant Textron with an all-cash bid worth £195.2m, reports BDN financial editor Roger Willis.

Through a wholly owned subsidiary, Textron has made an offer to purchase all outstanding Arctic Cat stock at $18.50 per share, representing a 40.7% premium to the closing NASDAQ exchange price on 20 January. The deal should be complete by 7 February. However, a number of legal challenges by minority shareholder interests may delay closure.

Arctic Cat’s ATV and snowmobile brands will continue within Textron’s portfolio, as presumably will its contract manufacturing activities for Yamaha.

Boasting a current capitalisation of £10.3bn and 35,000 employees across several industries, Textron already has a presence in the powersports market through its Bad Boy quadbike and side-by-side ATV brand. The company also makes golf buggies and various other types of leisure vehicle under several brands. But is probably best-known in the consumer sphere for Ransomes, Jacobsen and Dixie Chopper lawnmowers and mechanised horticultural equipment.

An industrial vehicles division under the Textron brand most notably produces aviation ground support products such as large aircraft tow tractors.

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