Polaris announces acquisition of WSI Industries
Polaris Industries Inc. and WSI Industries, Inc. today jointly announced the execution of a merger agreement by which Polaris will acquire all outstanding common stock of WSI Industries for $7.00 per share in cash, resulting in a WSI Industries enterprise value of approximately $23.9 million. The merger, which is expected to close in the fourth calendar quarter of 2018, is subject to customary conditions including WSI shareholder approval.
WSI Industries reported net sales of $25.9 million for the first three quarters of its fiscal 2018 ending August 26, 2018, of which 78% was attributable to sales to Polaris.
“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 chief executive officer. “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.”
Commenting on the acquisition, Ken Pucel, executive vice president of Operations, Engineering & Lean at Polaris, said: “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.”
Following the closing of the transaction, Polaris will manage WSI Industries as a distinct operation reporting into Pucel’s Global Operations organization and will maintain its facility in Monticello, Minnesota.
