Arctic Cat might be bought out by motorsports heavyweight soon?

[FreezerBurnt]

http://snoriderswest.com/article/snoridersinsider/speculation_harley_davidson_could_return_to_the_snowmobile_business

 

Speculation Harley-Davidson could return to the snowmobile business

“Arctic Cat, Inc. has a snowmobile business that could complement the Harley off-season," says Travis Brown, investor analyst.

 

July 2016

A 1974 AMF Harley-Davidson snowmobile— 1975 was the last time HD produced snowmobiles. Photo courtesy Vintage Snowmobiles

Harley-Davidson getting back into the snowmobile business? Investor analyst Travis Brown of Seeking Alpha speculated last week that Harley-Davidson’s positive financial situation makes the company a natural to expand to take over snowmobile manufacturer Arctic Cat.

“Arctic Cat, Inc. has a snowmobile business that could complement the Harley off-season. The new SVX 450 is a unique product that could thematically bridge the two together,” wrote Travis Brown, in his stock market analysis report.

Harley-Davidson, Inc. reported last quarter to have nearly $700m in cash and equivalents. That's an account that could easily takeover Arctic Cat, Inc. (NASDAQ: ACAT) based on the market capitalization or a premium on asset valuation, Brown added.

Snowmobilers will remember that Harley-Davidson was active in the snowmobile industry from 1966 to 1975 when the company was part of the American Machine and Foundry Group (AMF).  In addition to the Harley-Davidson line of snowmobiles, AMF produced others sleds including the Ski-Daddler line.

Ironically, on the heels of this speculation another report was issued by Seeking Alpha suggesting that Harley-Davidson itself was a take-over target by financial power house and private equity firm KKR.

Harley-Davidson (NYSE: HOG) issued the following statement to StreetInsider.com on today's rumor that private equity firm KKR is interested in buying the company:

"Harley-Davidson has periodically been the subject of marketplace speculation of various sorts. It's our longstanding practice not to comment on market rumors and speculation."

Take-over rumours fueled a 20+% price jump in Harley-Davidson stock late last week.

“Brand recognition, and especially brand recognition in any brand where there are many loyalists, is extremely important. No company has more loyal followers than Harley-Davidson. Those who buy Harley-Davidson products also live the Harley-Davidson lifestyle. It is more than a brand, and this is value that the company simply does not have on its balance sheet,” said Seeking Alpha’s commentator Orange Peel Investments.

Will we see Harley-Davidson return to the snowmobile business? Only time will tell. Who knows? You might be watching for an Arctic HOG on a snowmobile trail near you next winter!

 

[Viperules700]

Great can't wait to hear Harley rumble in a sled.

[sledjunk]

Should be able to see the oil leak trail in the snow

[dweese]

Make sure you ride in groups, so at least one sled can make it home to get the trailer.

[Techdenis007]

We laugh at how they're junk, but it's too true.  On our way to North Bay last Friday, we saw 2 different pairs of bikes, at each place one was getting pushed up onto a trailer.  

 

Friggin' junk, they'll carry the Cat name well .....

[tireless]

had one 40 yrs ago ..... it would only run in the garage!!! Junk>

[reevester]

We laugh at how they're junk, but it's too true. On our way to North Bay last Friday, we saw 2 different pairs of bikes, at each place one was getting pushed up onto a trailer.

Friggin' junk, they'll carry the Cat name well .....

It was bile weekend in liskeard, I'm sure there were a few broke down in spots.

Pretty bold coming from someone who makes a living fixing broken skeedoos and can-am.

[02Sled]

It seems that Toronto Police continue to use Harleys even though they have tested varying brands over the years. I remember when they were trying Honda a very long time ago and I believe it was about 2010 that they were trying BMW. Something about the durability of the Harley for the hours that they put on them and the feedback on the comfort from the officers has kept them going with Harley.

[catinental couch]

It was bile weekend in liskeard, I'm sure there were a few broke down in spots.

Pretty bold coming from someone who makes a living fixing broken skeedoos and can-am.

Ya! What Reevester said.Denis,aren't you supposed to be fixing your air conditioning or something.Remember that karma thing.LOL

On the other hand,they will come stock with an electromagnet to pick up the nuts and bolts that fall off from the vibrations.

[Blake G]

 

_{Annual Sales   (Millions)}

_{Arctic Cat                        730}

_{Polaris Industries         4720}

_{BRP                                3000}

_{Yamaha Motor Co.      13340}

_{Harley Davidson           6007}

 

 

_{Harley Davidson has recently been discussed as a potential leveraged buyout target for private equity firm KKR.}

[Blake G]

Meanwhile, from June 14, 2016 regarding personal water craft lawsuit:

 

Judge trebles damages, awards $46M judgment in Arctic Cat’s patent-infringement suit vs. BRP

 

http://powersportsbusiness.com/news/2016/06/14/judge-trebles-damages-awards-46m-judgment-in-arctic-cats-patent-infringement-suit-vs-brp/

[jrhz06]

Great, just what we need. A noisy, heavy, air cooled, oil leaking sled with less power than any other engine its size. At least they shouldn't overheat in the winter.

[ontariof7]

Great, just what we need. A noisy, heavy, air cooled, oil leaking sled with less power than any other engine its size. At least they shouldn't overheat in the winter.

 

 

I have never owned a Harley or bike for that matter; never plan too. However, no one has ever placed a corporate logo on their bodies like those that place a Harley Davidson tattoo. They are a marketing machine, I admire them for that. Even with, as I am told, being heavy, air cooled, leaking oil and less power then any other brand. Perhaps there is a fit for them in the sled world to bring their marketing genius to our trails?

[dweese]

Meanwhile, from June 14, 2016 regarding personal water craft lawsuit:

Judge trebles damages, awards $46M judgment in Arctic Cat’s patent-infringement suit vs. BRP

http://powersportsbusiness.com/news/2016/06/14/judge-trebles-damages-awards-46m-judgment-in-arctic-cats-patent-infringement-suit-vs-brp/

What was this over any idea? BRP invented the jet ski almost 50 years ago... and they have made Tigershark in what almost 20 years? Can't imagine what patent BRP could have infringed on, or is this just an Apple vs Samsung case where the American court rules in favor of the American company.

A Google search say, some how Arctic Cat patented what basically for a rudder... how do you get a patent for a rudder?

Search also turned up a bunch of other law suits between the 2, so my guess is money will never change hands.

[Wildbill]

 

_{Annual Sales   (Millions)}

_{Arctic Cat                        730}

_{Polaris Industries         4720}

_{BRP                                3000}

_{Yamaha Motor Co.      13340}

_{Harley Davidson           6007}

 

 

_{Harley Davidson has recently been discussed as a potential leveraged buyout target for private equity firm KKR.}

I wonder what the sled sales alone are 

[Sledguy74]

I wonder what the sled sales alone are

I think I had read that polaris sled sales only counted for 12 %. ATVs were 60+% and the rest were motorcycles.

[Techdenis007]

 

_{Annual Sales   (Millions)}

_{Arctic Cat                        730}

_{Polaris Industries         4720}

_{BRP                                3000}

_{Yamaha Motor Co.      13340}

_{Harley Davidson           6007}

 

 

_{Harley Davidson has recently been discussed as a potential leveraged buyout target for private equity firm KKR.}

 

Yamaha has some big numbers in there.  BTW, Guitars and Keyboards don't count.....

 

 

It was bile weekend in liskeard, I'm sure there were a few broke down in spots.

Pretty bold coming from someone who makes a living fixing broken skeedoos and can-am.

 

You forgot Honda.....

[reevester]

Yamaha has some big numbers in there. BTW, Guitars and Keyboards don't count.....

You forgot Honda.....

I'm guessing you don't wrench on Honda alot.

[ArcticCrusher]

Yamaha has some big numbers in there. BTW, Guitars and Keyboards don't count.....

You forgot Honda.....

I believe that is just their motor division. Anyway, sales don't necessarily equate to quality. Marketing can sell crap.

[ArcticCrusher]

I'm guessing you don't wrench on Honda alot.

Honda's aren't what they used to be and I do not consider then a leader in the power sport (quad) business. But hey they gotta be more reliable than Doo. Lol.

[Old Sledder]

I for one would welcome a deep pocketed owner to drive sales in this category, HD is an iconic brand, which should bring value to sledding

[AC+YA]

What was this over any idea? BRP invented the jet ski almost 50 years ago... and they have made Tigershark in what almost 20 years? Can't imagine what patent BRP could have infringed on, or is this just an Apple vs Samsung case where the American court rules in favor of the American company.

A Google search say, some how Arctic Cat patented what basically for a rudder... how do you get a patent for a rudder?

Search also turned up a bunch of other law suits between the 2, so my guess is money will never change hands.

 

 

dweese,

 

I think it was for a system which automatically came into play when a throttle was released while the bars were turned all the way to either side.  On the early jet powered craft without any form of rudder, a common mistake made by those without experience was to get off the throttle and turn the steering to avoid a crash or close call.  However, the result of this type of reaction was to actually continue on the original path of the machine as it slowly came off plane and decelerated.  Continuing on path very often resulted in a crash or close call.

With the auto rev system, the machine actually could supply power to the jet steering system while the operator turned the nozzle and thus the machine would change course as the operator desired to avoid the issue.  It often would have been better to supply even more thrust with the throttle, but some was better than none.   

There were so many issues with "new to the sport" riders that in Michigan laws were passed to make the owner of these watercraft responsible for the actions of anyone they let ride the machines.

I had several 3-D Sea-Doo Models which had a form of this auto rev when the bars were turned all the way to one side or the other. 

This was sort of the rudder which did not exist and what the patient may have been about.

[revrnd]

Great can't wait to hear Harley rumble in a sled.

I don't think the HD sleds in the 70s went potato potato potato potato down the trails.

 

It's bad enough the SX wannabes have to put cans on their worn out REVs, now we'll have idgits putting straight pipes & "Loud pipes save lives" stickers on the sleds.

[revrnd]

had one 40 yrs ago ..... it would only run in the garage!!! Junk>

You'd love the guy 3 doors up the street. He has a V Rod & spent most of last Sun' afternoon "tuning it". I have no idea how many times he started it, revved it up twice and then shut it off. Repeat as necessary.   

[snowowl]

 

_{Annual Sales   (Millions)}

_{Arctic Cat                        730}

_{Polaris Industries         4720}

_{BRP                                3000}

_{Yamaha Motor Co.      13340}

_{Harley Davidson           6007}

 

 

_{Harley Davidson has recently been discussed as a potential leveraged buyout target for private equity firm KKR.}

I would think that all of the companies on the list other than maybe Yamaha are under close watch by the capital investment business.  Stock prices are down for all of them; the powersports industry is a very tough market right now.  Crappy winters are holding down sled sales (especially in the mid west) and the ATV/side X side market has way too much competition.  I don't follow the dirt industry much, but, it seems like there are dozens of companies selling side by sides, and to my eyes that business looks like the way the snowmobile industry was in the 1970's.