(Plymouth, Mn.)– Polaris Industries announced it’s acquiring a 24 percent interest in Austrian motorcycle manufacturer KTM Power Sports AG…formerly known as Cross Holding AG. Polaris will pay about 80 million dollars for its 24 percent interest.
Polaris CEO Tom Tiller says the deal will allow both companies opportunities that otherwise wouldn’t be possible. He says they highly compliment each other in terms of sales and manufacturing and will open new doors for both.
Tiller says both companies will be run separately during the first phase of the partnership, working together on several projects including new product development, engine technology sharing, distribution, manufacturing and purchasing. He says the initial phase of the partnership will last about two years and could be expanded after that. Tiller says no changes in employment are expected at either company.
Under the deal, Tiller is expected to be named to the KTM supervisory board after the closing date of the transaction while KTM CEO Stefan Pierer is expected to be named to the Polaris Board of Directors.
Polaris Industries had annual sales of 1.8 billion dollars in 2004. The company, which has a plant in Spirit Lake, designs, engineers, manufactures and markets snowmobiles, all-terrain vehicles, Victory Motorcycles and the Polaris Ranger for recreational and utility use.
KTM Sportsmotorcycle designs, engineers, manufactures and markets off-road and on-road motorcycles and related parts, garments and accessories. The company had annual sales of 402 million Euros in 2004.
