Polaris Industries (PII) Stock Soars After Timbersled Acquisition, Earnings
Shares of Polaris Industries (PII) were trading up +7.02 or +4.98 percent to $148.00 per share in Thursday's premarket after news late yesterday that the company would be acquiring privately held Timbersled Products. The company also released better than expected earnings for the company's first quarter. Polaris Industries stock closed at $140.98, up +2.37 or +1.71 percent in Wednesday's regular trading session.
Founded in 1954, Medina, Minnesota based Polaris Industries is a U.S. manufacturer of off road vehicles such as snowmobiles, ATVs and motorcycles.
Sandpoint, Idaho based Timbersled Products is a privately held company that develops and sells conversion kits for converting off road motorcycles for use in snow. The company's main product, the Mountain Horse conversion kit retails for $5,300 to $6,500 and can be used to convert off road bikes made by Honda, Suzuki, Kawasaki, Yamaha and Husaberg.
Polaris announced the acquisition late yesterday afternoon without disclosing the terms of the deal. According to the company's press release, Timbersled will retain its name and will continue operating as a distinct brand from its headquarters in Sandpoint, Idaho.
Scott Wine, Polaris Chairman & Chief Executive Officer said "We are excited to add the Timbersled brand and team to Polaris' strong snowmobile business. Timbersled has created a compelling product and revolutionized the sport of snow biking, and we are excited to see what they can accomplish with access to Polaris' considerable engineering, manufacturing and distribution capabilities. Their Mountain Horse is the unequivocal choice of snow bike enthusiasts, emphasizing Timbersled's relentless commitment to innovation, performance and quality. Our common culture and shared passion for the Powersports industry and consumer will create an exciting platform for continued innovation and accelerated growth.
Allen Mangum, Timbersled's President stated that, "Timbersled is excited to be a part of the Polaris family. Our shared commitment to delivering exceptional performance to riders and history of innovation make this a great fit, Timbersled's success is built on a passion for delivering exciting products. We look forward to working with Polaris to take our product, customer relationships and the sport to the next level.
The acquisition of Timbersled by Polaris will give Polaris a strong position in the kit conversion market for off road motorcycles and will complement the company's already strong position in the snowmobile industry. In addition, the acquisition will add to the company's growing presence in the motorcycle industry after its 2011 acquisition of Indian Motorcycles.
This morning's action in the stock is also being fueled by better than expected earnings announced by Polaris just before the bell; the company reported a profit of $75.5 million or $1.07 per share, up from $60.1 million or $0.85 one year ago and upwardly revised its yearly guidance.
Other News About PII
Polaris Industries net up 26%, lifts year view
Company beat earnings estimates by $0.06 and upwardly revised its full year guidance.
NAM and Polaris Industries Honor Senator Thune for Supporting Manufacturing
Senator honored at event in Vermillion, South Dakota.
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