POLARIS® INDUSTRIES COMPLETES ACQUISITION OF TRANSAMERICAN AUTO PARTS
Minneapolis, Minnesota (November 15, 2016) Polaris Industries, Inc. (NYSE:PII) today announced that it has completed the previously announced acquisition of Transamerican Auto Parts (TAP), the leading manufacturer, distributor and retailer of off-road Jeep and truck aftermarket accessories, for an aggregate consideration of $665 million, subject to customary adjustments, financed through Polaris’ existing credit facilities.
Polaris expects the TAP acquisition to contribute approximately $100 million to the Company’s fourth quarter 2016 sales and anticipates acquisition costs and purchase price accounting associated with the acquisition of TAP to result in a negative impact to fourth quarter 2016 net income of $15 million to $20 million, or $0.23 to $0.31 per diluted share. Excluding the effects of the TAP sales contribution and purchase accounting/acquisition costs, the Company’s earnings guidance for the full year 2016 remains unchanged from its previously provided $3.40 to $3.60 per diluted share with sales expected to be down in the mid- to high-single digit percent range.
The Company continues to anticipate the TAP transaction will be accretive to Polaris’ earnings per share, excluding acquisition and purchase price accounting costs, for the full year 2017. Polaris will provide full year 2017 guidance that includes the impact of the TAP transaction when the Company reports fourth quarter and full year 2016 results. The Company expects meaningful annual cost savings within three years following closing, primarily from efficiencies related to procurement, distribution, and expanded product offerings.
As previously announced, TAP will initially operate as a distinct business unit reporting to Steve Eastman, Polaris’ President of Parts, Garments and Accessories.
About Polaris®
Polaris Industries Inc. (NYSE: PII) is a global powersports leader with annual 2015 sales of $4.7 billion. Polaris fuels the passion of riders, workers and outdoor enthusiasts with our RANGER®, RZR® and Polaris GENERAL™ side-by-side off-road vehicles; our SPORTSMAN® and Polaris ACE®all-terrain off-road vehicles; Victory® and Indian Motorcycle® midsize and heavyweight motorcycles; Slingshot® moto-roadsters; and Polaris RMK®, INDY®, Switchback® and RUSH® snowmobiles. Polaris enhances the riding experience with parts, garments and accessories sold under multiple recognizable brands, and has a growing presence in adjacent markets globally with products including military and commercial off-road vehicles, quadricycles, and electric vehicles. www.polaris.com
Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding synergies and other benefits of the acquisition, and future performance of Polaris, TAP and the combined companies are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include factors such as anticipated tax benefits from the acquisition may not be achieved by the Company; problems or unforeseen costs may arise in integrating the businesses of the two companies and the integration may not be successful; the combined companies may be unable to achieve the anticipated synergies or those benefits may take longer to realize than expected; the businesses of the combined companies may suffer as a result of the transaction including through disruption of relationships with customers, employees or suppliers; increased competition and its effect on pricing; the combined companies may not perform as expected following the closing; Polaris’ ability to successfully implement its manufacturing operations expansion initiatives, cost reduction initiatives, product offerings, promotional activities and pricing strategies against competitors; economic conditions that impact consumer spending; product recalls; warranty expenses; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; performance of affiliate partners; changes in tax policy and overall economic conditions, including inflation, consumer confidence and spending and relationships with dealers and suppliers; and other risks beyond the control of either party. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements.
4 WHEEL PARTS UTVUNDERGROUND GARAGE TO INVADE SAND SPORTS SUPER SHOW
4 Wheel Parts, the global leader in off-road performance product sales and service has released further details of its upcoming launch into the immensely popular UTV retail marketplace in collaboration with influential UTV Internet portal, UTVUnderground. The alliance, uniting the off-road performance products sales and distribution powerhouse with the Internet’s leading resource for UTV-related content and information, has resulted in the forthcoming introduction of 4 Wheel Parts UTVUnderground Garage – the ultimate UTV parts and accessory shopping experience. The retail marketplace will provide UTV owners enhanced safety, performance and customization with a singular destination backed by 4 Wheel Parts’ industry leading product selection, installation, customer service and nationwide distribution.
With the official launch of the 4 Wheel Parts UTVUnderground Garage at the Sand Sports Super Show September 16-18 at the Orange County Fair and Events Center in Costa Mesa, CA, consumers will have the first opportunity to experience the comprehensive selection of UTV parts and accessories available.
The move into the UTV aftermarket is a natural fit for the off-road retailer explains 4 Wheel Parts Chief Operating Officer, Rich Botello. “The off-road landscape continues to evolve,” said Botello. “Whether they’re out on the trail, the dunes or headed out to a favorite hunting or fishing spot, UTVs provide a unique level of accessibility and affordability for consumers with all levels of off-road driving experience. We’re well positioned to service these consumers with the infrastructure we’ve built and the expertise we’ve acquired over 55 years in the off-road performance and accessory business.” This infrastructure includes 75 retail and installation locations, e-commerce and mail order services, same day pick up or next day delivery and over $125M in inventory of products for off-road enthusiasts.
Visitors to the Sand Sports Super Show will have the opportunity to visit the new 4 Wheel Parts UTVUnderground Garage display which will be overflowing with the latest products from Rigid Industries, Cagewrx, Walker Evans Racing, Cognito Motorsports, FOX SHOX, SDR Motorsports, Tensor Tires, Method Race Wheels, HCR Racing, Nelson & Nelson, MSA Wheels, EFX Tires, Sand Tires Unlimited, BFGoodrich, Factory UTV, King Shocks, PRP Seats, Simpson, K&N Engineering, Racepak, Trinity Racing, HMF, Vision-X, Gorilla Whips, PCI Communications, SSV Works, Mob Armor, Axia Alloys, Assault Industries, Grant Steering Wheels, Motor Master Powersports and more.
The 4 Wheel Parts UTVUnderground Garage booth will also feature four newly built custom vehicles showcasing parts and accessories available through The Garage. These four unique builds represent the wide range of UTV performance and capabilities for the desert and the dunes.
“With these four custom builds we wanted to illustrate that in addition to finding the latest UTV parts and accessories via 4 Wheel Parts UTVUnderground Garage, you can also drop your UTV off and have it built without the hassle of chasing down parts and installers,” said Joey DiGiovanni, Founder and CEO of UTVUnderground.com. “We have now made it easy for UTV enthusiasts to customize their UTVs.”
The 4 Wheel Parts UTVUnderground Garage at the Sand Sports Super Show can be found inside the blue gate entrance. Don’t miss this unique opportunity to check out the custom builds and the best selection of the newest UTV parts and accessories.
4 Wheel Parts, UTVUnderground and Polaris RZR are celebrating the launch of The UTVUnderground Garage with a kickoff party at the Sand Sports Super Show booth Friday night September 16 at 6 p.m. It will include free drinks, music, merchandise giveaways and more and UTV enthusiasts are welcome to attend.
What: 4 Wheel Parts UTVUnderground Garage
Where: Sand Sports Super Show
OC Fair and Events Center – Costa Mesa, CA
Inside by the Blue Gate Entrance
When: September 16-18
About 4 Wheel Parts:
4 Wheel Parts is the global leader in off-road truck, Jeep and aftermarket performance products. With 75 locations across the U.S. and Canada and growing, 4 Wheel Parts Service Centers install all the products they sell. Maintaining the nation’s largest inventory of off-road tires, wheels, suspension products and accessories, 4 Wheel Parts serves customers across the country and around the globe. Life is Better Off-Road™. Visit them at 4wheelparts.com or call toll-free 877-474-4821
About UTVUnderground.com:
The world’s fastest growing all-inclusive UTV site contributed to by both enthusiasts and manufacturers alike. UTVUnderground is the go-to site for fresh, original content and is known for its dedication to hosting all of the latest news and insight surrounding the UTV culture. Thousands of monthly visitors from over 100 different countries around the world go to UTVUnderground.com for their daily dose of UTV news and information.
4 WHEEL PARTS ENTERS INTO POPULAR UTV AFTERMARKET
Compton, California (August 1, 2016) – 4 Wheel Parts, the global leader in off-road performance product sales and service, has announced its entrance into the immensely popular and growing UTV aftermarket. In launching its foray into the emerging UTV marketplace, 4 Wheel Parts has formed a multi-tiered alliance with the influential digital portal, UTVUnderground that will include content creation, marketing collaboration and the launch of the “UTVUnderground Garage” which will provide a vital retail resource to the UTV enthusiast.
“We’re enthusiasts ourselves and we have seen firsthand the explosion of excitement surrounding the UTV market,” said Rich Botello, 4 Wheel Parts COO. “UTVUnderground is the leading destination for UTV reviews, news, information and unique content. We are excited about this multifaceted collaboration as it will provide us with an authentic platform in which to connect with the UTV enthusiast.”
With the widening popularity of UTVs as a performance platform, UTVUnderground and its online destination UTVUnderground.com has emerged as the preeminent authority in the category. Along with many first to market product reviews and significant manufacturer engagement, UTVUnderground has established itself as the leading influencer in the continually expanding UTV marketplace.
“There are millions of UTV enthusiasts looking for information and products every day and we are inundated with inquiries from people looking to purchase the products we feature on UTVUnderground.com,” said Joey DiGiovanni, founder and CEO of UTVUnderground.
4 Wheel Parts sales and distribution of UTV performance parts and accessories will provide consumers the opportunity to shop by phone, in-store and online with the same convenience and dependability truck and Jeep owners have come to rely on for decades. Retail sales and installations of UTV products will be first introduced to select Southern California, Nevada and Arizona 4 Wheel Parts locations as all 75 stores nationwide will subsequently be retrofitted with UTV focused displays and in-store inventory.
“In addition to numerous customers inquiring about UTV products, many of our suppliers are adding UTV parts and accessories to their existing lineups. Having over 55 years of experience servicing the off-road enthusiast, it is a natural fit for 4 Wheel Parts to expand into this category,” added Botello.
“This partnership with 4 Wheel Parts allows us to complete the circle and sell directly to customers with a combination of 4 Wheel Parts brick and mortar retail infrastructure and a significant online presence. Our goal will be to create an exceptional retail experience. After all, we are selling this exciting lifestyle,” said DiGiovanni.
Spearheaded by motorsports content powerhouse Mad Media, the creators of the Polaris XP1K viral video series franchise that has collected over 24 million views, UTVUnderground and 4 Wheel Parts will be collaborating on an aggressive marketing program designed to introduce UTV enthusiasts to 4 Wheel Parts and UTVUnderground Garage through unique, compelling content.
“We have a proven history of creating some of the most engaging content in the off-road and UTV industry,” said Mad Media CEO, Matt Martelli. “We will be launching an aggressive content plan that includes a television package, online video and photography as well as editorial content. It’s a new way to entertain, inform and sell to UTV enthusiasts along with mainstream consumers. We are just barely scratching the surface in the UTV aftermarket. This partnership with 4 Wheel Parts will radically evolve mainstream UTV retail targeting,” concluded Martelli.
UTV enthusiasts will have their first opportunity to see elements of this partnership at the official unveiling of the 4 Wheel Parts/UTVUnderground Garage on Friday, September 16th at the Sand Sports Expo in Costa Mesa, Ca. Visitors to the massive 4 Wheel Parts/UTVUnderground Garage display at the show will have an opportunity to check out several insane UTV builds, purchase accessories from some of the best brands in the industry and enter to win a brand new 2016 Polaris RZR 1000.
About 4 Wheel Parts:
4 Wheel Parts is the global leader in off-road truck, Jeep and aftermarket performance products. With 75 locations across the U.S. and Canada and growing, 4 Wheel Parts Service Centers install all the products they sell. Maintaining the nation’s largest inventory of off-road tires, wheels, suspension products, and accessories, 4 Wheel Parts serves customers across the country and around the globe. Life is Better Off-Road™. Visit them at 4wheelparts.com or call toll-free 877-474-4821
About UTVUnderground.com:
The world’s fastest growing all-inclusive UTV site contributed to by both enthusiasts and manufacturers alike. UTVUnderground is the go-to site for fresh, original content and is known for its dedication to hosting all of the latest news and insight surrounding the UTV culture. Thousands of monthly visitors from over 100 different countries around the world go to UTVUnderground.com for their daily dose of UTV news and information.
About Mad Media
Mad Media (www.madmedia.com) is a San Diego based marketing and creative agency, with in-house film and television production. We craft authentic, culturally engaging brand messages, and deliver them across print, web, photography, and film platforms. Mad Media has been leading the online content revolution since 1995 producing major commercial, television, online content and viral film projects such as The Gymkhana Series and XP1K Series. Owner of The Mint 400 off-road race and UTV World Championship off-road race, Mad Media has pioneered marketing campaigns integrating events with print, online, social media, TV content and merchandise to create fully integrated brand experiences.
