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Discussion Starter · #1 · (Edited)
It was announced today, June 17, 2022, that Polaris Industries Inc. was selling the Transamerican Auto Parts (TAP Worldwide LLC) business to Wheel Pros for approximately $50 million US. Polaris is doing this so they concentrate on meeting consumer demand for their powersports lineup.

A better review of this sales transaction is now available:
Analysis by Seeking Alpha consultancy


With reduction of inventory levels from 2016 and other debt transfers and cash inflows to Polaris in the second half of 2022, it appears that the overall net loss is much less than it appeared from the initial press release.

TAP operates 94 "4 Wheel Parts" retail parts stores, online parts sales and Transamerican Wholesale parts Distributor. It produces the G2 Axle & Gears, LRG Wheels, Poison Spyder, Pro Comp, Rubicon Express and Smittybuilt brands.

This business sale is expected to be completed in the third quarter of 2022.

TAP was purchased in 2016 by Polaris when Scott Wine was the Polaris CEO and paid $675 million US for the business at that time.
 

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Are there any subsidiaries that they are keeping or have already sold to cover the gap between 675M and 50M? Seems like everything in the world is crazy expensive right now, how did the value of that drop so much? I'm no business expert,but was Waylon Jennings once said .. "ain't living long like that"
 

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You can be sure that Polaris did this for very good reasons. The economic situation is falling apart right now as planned. Depression is underway.


Excerpt:
Except for historical information contained herein, the matters set forth in this presentation and discussed in the corresponding earnings call are “forward-looking statements” intended to qualify for the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as we or our management “believes,” “should,” “anticipates,” “expects,” “estimates” or words of similar import. Similarly, statements that describe our future plans or trends, objectives or goals, such as future sales, shipments, inventory levels, consumer demand, net income, net income per share, future cash flows and capital requirements, operational initiatives, pricing actions, tariffs, currency fluctuations, interest rates, and commodity costs, are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include such factors as the severity and duration of the COVID-19 pandemic and the resulting impact on the Company’s business, supply chain, and the global economy; the Company’s ability to successfully implement its manufacturing operations expansion and supply chain initiatives; the Company’s ability to successfully source necessary parts and materials and the ability of the Company to manufacture and deliver products to dealers to meet increasing demand and to bring dealer inventory levels back to optimal levels; the continuation of the increasing consumer demand for the Company’s products; product offerings, promotional activities and pricing strategies by competitors; economic conditions that impact consumer spending; disruptions in manufacturing facilities; product recalls and/or warranty expenses; product rework costs; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; freight and tariff costs (tariff relief or ability to mitigate tariffs); changes to international trade policies and agreements; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; performance of affiliate partners; changes in tax policy; relationships with dealers and suppliers; and the general overall economic, social and political environment. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements.
 

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Can't get into the politics of this for fear this thread will be closed, but i cannot believe no one is that stupid, they have to know what their doing.
It's global issue; incompetence and malicious intent are two different things. Either way, I think we can all agree on hoping it doesn't happen, the 2008-2009 and pandemic episodes were bad enough
 
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