euro adhoc: Cross Holding AG
Mergers - Acquisitions - Takeovers
KTM and
POLARIS -
A Strategic Partnership in the field of POWER SPORTS Vehicles
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
19.07.2005
Wels/Mattighofen: The KTM POWER SPORTS AG (formerly CROSS Holding AG) is entering into a strategic partnership with POLARIS Industries Inc., which is based in Minneapolis, Minnesota, U.S.A. As it has announced, POLARIS shall take over the 24% equity stake in KTM POWER SPORTS AG held by Swisspartners. It will thereby become a new shareholder of the KTM POWER SPORTS AG, which is listed on the prime market of the Wiener Börse (Vienna Stock Exchange). It is contemplated that DI Stefan Pierer, managing director of the KTM Power Sports AG, shall be nominated for a seat on the Board of Directors at POLARIS and that Tom Tiller, the Chief Executive Officer (CEO) of POLARIS, also be nominated for a seat on the KTM supervisory board.
The first stage in the strategic partnership with POLARIS has been given a two-year timetable. As of now there will be a co-operation in the sector product development, manufacture, and distribution. Both companies shall thereby continue their business activities as independent entities.
With POLARIS and KTM, two strategic partners have found each other who can both point to exceptional economic successes and a dominant position in their respective business sectors. Furthermore, POLARIS and KTM share a very similar culture, in which the focal point is the "passion to ride". The combined turnover of both companies amounts to about USD 2.4 billion.
In the past business year (2004), POLARIS Industries Inc. achieved a turnover of approx. USD 1.8 billion. As the largest non-Japanese manufacturer of ATVs, snowmobiles (world market leader), 4x4 utility vehicles and (in the motorcycle segment) of the "Cruiser" under the brand name VICTORY, POLARIS is primarily active in the North American market. Through this co-operation, KTM can intensify its presence in North America and accelerate its entry into the ATV segment. KTM shall supply POLARIS with KTM engines and the groundwork is being laid for KTMs distribution of the POLARIS product spectrum in certain Central and Eastern European markets. With production sites on both continents there is the possibility for both companies to hedge against foreign exchange exposure.
Two strong brands, established distribution networks and above all the companies matching objectives - to become together the dominating power in the global POWER SPORTS business - are the basis of this strategic alliance, from which both companies shall profit.
In 2007, after a two-year period, the partners will have the opportunity to further expand their co-operation. POLARIS and CROSS Industries AG - the main shareholder of KTM POWER SPORTS AG - have entered into an agreement that enables CROSS to convert KTM shares into POLARIS shares - according to an established assessment formula - and thereby become a significant shareholder in a joint POLARIS/KTM Group.
Information about KTM POWER SPORTS AG can be found under www.cross-ag.com and August 1, 2005 at the latest under www.ktm.com/investor relations.
end of announcement euro adhoc 19.07.2005 07:30:00
Further inquiry note:
DI STefan Pierer, Telefon +43 (0) 7242 / 694 02
mailto:info@cross-ag.com
Branche: Economy, Business & Finance
ISIN: AT0000645403
WKN:
Börsen: Wiener Börse AG