PSB ’ s sister publication , Snow Goer , reports that Textron is seeking a buyer for its Arctic Cat division as it recently filed a Form 8−K report with the Securities & Exchange Commission .

Textron ’ s filing says it is , “ Pursuing strategic alternatives for its powersports product line within the Industrial segment ’ s Textron Specialized Vehicles ( TSV ) business .”

Textron states that the market for powersports products “ continues to remain soft ,” therefore , management has begun to review alternatives for the business , aka , a new buyer .

“ The consumer end market demand for powersports products continues to remain soft ,” the filing continued . “ As a result , and in conjunction with its annual operating plan process , TSV has begun to pause production of its powersports products as Textron ’ s management reviews strategic alternatives for the business . Upon completion of limited production runs to satisfy customer commitments , production of TSV ’ s powersports products will be paused indefinitely in the first half of 2025 .”

The extended halt on production follows an earlier announcement of a production stop until the first quarter of 2025 .

A “ strategic alternative ” could include selling the division to an interested third party . Chatter among industry insiders has focused on brands like Argo , CFMoto , John Deere , Yamaha , and others who , in theory , could be interested in Arctic Cat – both for its current products and for its U . S . -based manufacturing facilities in Thief River Falls and St . Cloud , Minnesota .

However , all the potential suitors for Arctic Cat have been dropped purely as speculation , with few hard facts behind any of it .

OFFICIAL STATEMENT FROM TEXTRON

Snow Goer reached out to Brandon Haddock at Textron , and he relayed the following official announcement :

“ In response to the ongoing business conditions facing the powersports industry , Arctic Cat will suspend manufacturing operations indefinitely at our facilities in Thief River Falls and St . Cloud , Minnesota , after planned production in the first half of 2025 is complete .

“ Textron Inc . also announced that it is exploring strategic alternatives regarding the future of the powersports business . These actions are difficult but necessary as we have continued to experience softness in consumer end-market demand , resulting in a need to reduce costs .

“ Arctic Cat remains open for business with respect to selling current inventory and providing aftermarket support and services to our existing installed customer base . Our sales organization , customer service teams , aftermarket distribution centers , and other functions are ready to assist our dealers and loyal customers . We are committed to providing the service and support to keep our thousands of loyal customers riding and enjoying Arctic Cat vehicles .

“ We will resume production as planned after the new year to produce units under existing customer commitments . However , once that build is completed , we will suspend operations indefinitely and will release our manufacturing employees at the Thief River Falls and St . Cloud facilities . Employees who work through their specific completion date will be offered severance benefits . We will monitor industry conditions throughout

this suspension and make further announcements about our operational plans when we have more information to share .

“ We thank our employees , dealers , customers and supporters for their loyalty , patience and understanding as we weather the difficult conditions facing our business and our industry .”

ARCTIC CAT SEC ANNOUNCEMENT The rest of the Textron announcement focused on the short-term financial impact of the move – which is what most filings with the Securities and Exchange Commission typically do .

The filing reads : “ As a result of these developments , on December 18 , 2024 , Textron management approved additional actions at the Industrial segment under Textron ’ s 2023 restructuring plan . Total pretax special charges related to the 2023 restructuring plan are now expected to increase from the previously announced range of $ 165 million to $ 170 million to a range of $ 190 million to $ 205 million . The increased charges of $ 25 million to $ 35

Textron has begun seeking a new buyer or other “ strategic alternatives ” for its Arctic Cat division in Thief River Falls , Minnesota . Photo courtesy of Arctic Cat

million are related to contract termination costs associated with the powersports production pause . These charges will be recorded in the fourth quarter of 2024 , with additional cash outlays of $ 25 million to $ 35 million expected primarily in the first half of 2025 . We expect the plan to be substantially completed in the first half of 2025 . In addition , due to the indefinite production pause , the company expects to incur an inventory valuation charge in the range of $ 30 million to $ 40 million to write down production-related powersports inventory to its net realizable value . Item 7.01 Regulation FD Disclosure The inventory valuation charge discussed above is expected to reduce adjusted earnings per share for 2024 by approximately $ 0.12 to $ 0.16 .”

The wider implications for the snowmobile market could be significant as only two OEMs are left in the segment – Polaris and BRP / Ski-Doo . On the off-road side , there are many players that will likely fill the void . However , Arctic Cat has a loyal following and would be an attractive option for the right buyer .