American-based Polaris Industries Inc. agreed to buy off-road manufacturer Transamerican Auto Parts Co. (TAP) for $665 million. TAP has a wide range of accessories for Jeep and truck market.
TAP sells products manufactured under seven proprietary brands, such as Trail Master and Rubicon Express. The company has generated about $740 million in sales in the past 12 months.
Scott W. Wine, Polaris Chairman and Chief Executive Officer said, "This transaction is consistent with our long-term strategy, provides us with an immediate leadership position in a growing market, and allows us to accelerate Polaris' growth and profitability. TAP's products and services for customers in the off-road four-wheel-drive ('4WD') market correspond closely to our Off-Road Vehicle ('ORV') business."
"Further, by broadening TAP's proprietary product lines, expanding its retail and distribution footprint, where appropriate, and cross-selling both companies' extensive product offerings to a large combined installed base, we believe we will create significant value for our stakeholders. Our similar cultures, centred on innovative brands and performance, make TAP a great addition to Polaris' expanding portfolio."
Greg Adler, TAP's President and Chief Executive Officer said, "Over the past 55 years, our employees have built a company that prides itself on serving our customers with quality products at competitive prices."
"We see tremendous opportunity for further growth as we become an integral part of the Polaris organisation. Combining TAP with Polaris' aftermarket brand portfolio facilitates significant synergies, while Polaris' financial resources provide the backing we need to pursue a variety of growth prospects we have identified across the organisation."