Polaris Industries to Acquire WSI Industries
Polaris Industries Inc. has agreed to acquire all outstanding common stock of WSI Industries for $7 per share in cash for an approximate value of $23.9 million.
WSI Industries provides precision machining and complex assembly for engine and powertrain components for the automotive and powersports markets, as well as other industrial markets.
The merger, which is expected to close later this year, is subject to customary conditions including WSI shareholder approval, according to the company.
WSI Industries reported net sales of $25.9 million for the first three quarters of its fiscal 2018-78-percent was attributable to sales to Polaris, according to the company.
“The WSI board is committed to maximizing shareholder value and we believe this transaction will deliver excellent value to our shareholders,” said Michael Pudil, WSI Industries’ president and CEO. “I am proud of our achievements at WSI Industries. This transaction is testament to the manufacturing excellence we have delivered to Polaris over the last 20 years.”
“WSI Industries has long been a key supplier of Polaris. By bringing precision machining capability in-house, the acquisition of WSI Industries supports our long-term supply chain strategy and is an exciting value creation opportunity for Polaris. We look forward to welcoming the WSI employees to the Polaris team,” said Ken Pucel, executive vice president of operations, engineering and lean at Polaris.
Polaris, following the closing of the transaction, will manage WSI Industries as a distinct operation reporting into Pucel’s Global Operations organization and will maintain its facility in Monticello, Minnesota.
Polaris owns Transamerican Auto Parts.
