Textron To Buy Arctic Cat For $247 Mln; Board Approves Share Buy Back

(RTTNews) - While reporting its fourth-quarter financial results today, Textron Inc. (TXT) said it has agreed to acquire recreational vehicle maker Arctic Cat Inc. (ACAT) in a cash transaction valued at about $247 million, plus the assumption of existing debt. Textron is a multi-industry company engaged in aircraft, defense, industrial and finance businesses.

Arctic Cat manufactures and markets all-terrain vehicles or ATVs, side-by-sides and snowmobiles, in addition to related parts, garments and accessories under the Arctic Cat and Motorfist brand names.

Textron Chairman and CEO Scott Donnelly said, "With our recent product introductions in the outdoor recreational vehicle market under the Stampede name, we believe Arctic Cat, one of the most recognized brands in the industry, provides an excellent platform to expand our portfolio, increase our distribution and create growth within our Specialized Vehicles business."

Textron has agreed to make a cash tender offer for all outstanding shares of Arctic Cat common stock at a price of $18.50 per share. The tender offer is expected to commence no later than February 7, 2017.

In addition, Textron's board of directors approved a new authorization for the repurchase of up to 25 million shares, under which the company intends to purchase shares to offset the impact of dilution from stock-based compensation and benefit plans and for opportunistic capital management purposes.