Polaris Industries continues to be the 800 lbs gorilla of corporate M&A in the motorcycle industry, and the American firm reinforced that fact today after it announced the acquisition of KLIM Technical Riding Gear. Known for its superb snow and off-road gear, KLIM is a strong apparel brand that matches up well with the core Polaris’s core business of ATVs and snowmobiles. While terms of the acquisition are not being discussed, KLIM is expected to clear $30 million in revenue in 2012.
In its statement, Polaris says that it will operate the KLIM brand in conjunction with the other existing Polaris apparel brands. Additionally, KLIM will continue operations at its Rigby location, and will retain the company’s current staff members. Planning to invest further in KLIM’s infrastructure, Polaris intends to establish the Rigby facility as its “new apparel Center of Excellence,” thus centralizing the company’s apparel manufacturing efforts.
“The KLIM acquisition provides yet another growth opportunity for our PG&A business, a key contributor to Polaris’ top-line growth and profitability,” said Steve Eastman, Polaris’ VP of PG&A. “KLIM is an established leader in the powersports apparel market with a strong track record of providing innovative, premium technical riding gear to a broad range of consumers.”
“Adding an outstanding brand like KLIM, whose strengths complement our existing business, gives us a more complete PG&A product lineup, one which will flourish in the global market. We are excited to welcome KLIM employees into the Polaris family. With our common culture and vision, we believe this will be a mutually beneficial partnership for everyone involved.”
“I built KLIM with a passion for the category and a commitment to the world’s adventure snowmobile and motorcycle riders,” said Justin Summers, KLIM Founder, President, and CEO. “We had a vision of making products that mattered, that solved problems and that were the best they could be.”
“I am very proud of what we have built at KLIM, and I am fired up that the next chapter of the KLIM story will be written through our exciting partnership with Polaris. KLIM will now have the resources to reach the next level as we continue to innovate and lead into the future.”
Source: Polaris
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