Polaris Industries Acquires KLIM
Polaris Industries has acquired motorcycle and snowmobile gear manufacturer KLIM. Terms of the acquisition were not disclosed.
The KLIM brand will continue operating as a standalone business alongside Polaris’ existing apparel labels. KLIM staff will continue operating at its existing headquarters in Rigby, Idaho. In fact, Polaris plans to make KLIM’s Rigby facility its new apparel “Center of Excellence”, using the company’s expertise and capabilities across all Polaris apparel brands.
“I built KLIM with a passion for the category and a commitment to the world’s adventure snowmobile and motorcycle riders,” says 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.”
KLIM’s products are geared more for an off-road rider, but this doesn’t mean Polaris is looking towards expanding its motorcycle offerings beyond its Indian and Victory cruiser and bagger brands. The acquisition is mostly for KLIM’s snowmobile products, considering Polaris’ snowmobile sales are about double its on-road vehicle sales. Most of KLIM’s sales are for snowmobile apparel while off-road and adventure touring motorcycle apparel accounts for less than a quarter of its business.
According to the company’s third quarter 2012 report, Polaris generated $128.6 million in sales from its Parts, Gear and Accessories business, but only about 6% of PG&A revenue (about $7.7 million) was from apparel sales. KLIM’s 2012 year-end sales on the other hand, are expected to approach $30 million.
“The KLIM acquisition provides yet another growth opportunity for our PG&A business, a key contributor to Polaris’ top-line growth and profitability,” says Steve Eastman, Polaris’ vice president 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.”