Polaris to draw on credit facilities for Transamerican Auto Parts buy

By Tali Rackner

Norfolk, Va., Oct. 12 – Polaris Industries Inc. plans to use borrowings under its existing credit facilities to fund its acquisition of Transamerican Auto Parts Co., according to a press release.

The total purchase price is $665 million.

After adjusting for the $115 million estimated net present value of future tax benefits, the purchase price implies a multiple of about 9 times Transamerican Auto Parts’ EBITDA for the 12 months ended Sept. 30.

The transaction is expected to close by the end of the year, Polaris said.

Polaris is a Medina, Minn.-based manufacturer and marketer of motorized recreational and utility products. Transamerican Auto Parts is a manufacturer, distributor, retailer and installer of off-road Jeep and truck accessories.

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