Gotta read between the lines a little on this one. Given all the supply chain issues going on, they likely sold it with much less inventory on hand in the warehouses than they bought it with, that'll account for the majority of the price differential.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"
I had a quick look at Transamerican's website and failed to see the fit. Likely a good move to part with it and concentrate on being a manufacturerGotta read between the lines a little on this one. Given all the supply chain issues going on, they likely sold it with much less inventory on hand in the warehouses than they bought it with, that'll account for the majority of the price differential.
In the official press release they mention at the end that they will be taking a $140 million "impairment charge", that's likely closer to what they actually lost on the business sale. Not sure how much its been contributing to quarterly profit since they acquired it ( if at all), haven't been watching the quarterly reports that closely.
They did mention in one of their quarterly calls last year that retail sales were poor and they were looking to transition it to wholesale business only, selling it completely apparently turned out to be the better option. I know talking to one of the local speed shop owners around here, he is having a hell of a time getting parts from the wholesalers he deals with. He's been in this game since the late 70's, has plenty of demand but can't get the product.
That’s why your sleds , SBS, ATVs ect are so expensive...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.
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.
From what they said in the original purchase press release, sounds like they were planning on leverging the various TAP brands into making ORV accessory parts for SxS's and ATV's. Doesn't sound like it worked out too well...I had a quick look at Transamerican's website and failed to see the fit. Likely a good move to part with it and concentrate on being a manufacturer