Polaris Acquires Distributorship in Australia and New Zealand
23 July 1999
Polaris Acquires Distributorship in Australia and New Zealand
MINNEAPOLIS--July 22, 1999--for Minnesota-Based Polaris
In the company's move toward international growth, Polaris announced today it has acquired H.A.H. Australia Pty. Ltd., a distributorship that supplies Polaris recreational vehicles to Australia and New Zealand, effective 7/1/99 for a total purchase price of $1.8 Million, paid in cash.
The distributor will now operate under the name Polaris Sales Australia Pty. Ltd. This newly formed subsidiary will operate a branch in New Zealand called Polaris Sales New Zealand Pty. Ltd.
"Polaris is well-poised for growth in the markets down under," said Tom Tiller, Polaris President and CEO. "Through our wholly-owned subsidiary in Australia and New Zealand, we will be able to offer customers in this region more competitive pricing, better product availability, and more financing options."
With the combined strength of all its products in its first international ownership initiative, Polaris is setting aggressive growth goals for this regional market. The company's goal is to quadruple sales in these two countries in four years, reaching $25 million in sales by 2003.
Australia is the largest All-Terrain Vehicle (ATV) market outside North America, and New Zealand is the third largest market outside North America. It is our anticipation the acquisition, which exemplifies Polaris' commitment to the international market, will increase Polaris' market share and product availability in these two countries. The new subsidiary combines an experienced team already in place in the region with an increased direct investment from its new U.S. parent company, Polaris.
Polaris ATVs are currently the most popular of the Polaris products available in this area. The new Magnum series ATVs are four-stroke, shaft-driven, competitively priced work horses designed specifically for the demanding farm and utility work found in Australia and New Zealand. In addition, the markets of Australia and New Zealand offer strong immediate opportunities for personal watercraft and also for Victory Motorcycles over the long term.
Polaris Industries Inc. designs, engineers, manufactures and markets snowmobiles, ATVs, personal Watercraft, the POLARIS RANGER and Victory Motorcycles for recreational and utility use. Polaris is the world's largest snowmobile manufacturer, and one of the largest U.S. manufacturers of all-terrain vehicles and personal watercraft. Polaris Industries Inc. trades on the New York Stock Exchange and the Pacific Stock Exchange under the symbol "PII" and the company is included in the S&P SmallCap 600 price index.
Certain matters set forth in this news release, including management's expectations regarding future sales and market share positions, are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements.