Textron Inc., in a report by Reuters, has said it will buy all-terrain vehicle maker Arctic Cat, Inc., for $247 million. The company says it looks to strengthen its specialized vehicles business amid slowing business jet sales.
Textron’s offer of $18.50 per share represented a premium of 41.3 percent to Arctic Cat’s close of market in late January.
Textron is a Cessna aircraft maker that also produces golf cars and off-road utility vehicles, and the acquisition of Arctic Cat will be housed within its industrial segment.
“With our recent product introductions in the outdoor recreational vehicle market under the Stampede name, we believe Arctic Cat … provides an excellent platform to expand our portfolio,” Textron said in a press release.
Artic Cat, according to the release, has been struggling with a softening demand in a competitive market. Textron said it hopes to turn that around and forecasts 2017 adjusted earnings in a range of $2.50 to $2.70 per share, on revenue of $14.3 billion.
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