Off-road vehicles manufacturer Polaris Industries said on Wednesday it would buy Transamerican Auto Parts (TAP) for $665 million.
 
Scott Wine, CEO of Medina-based Polaris, said the company saw strategic value in TAP, which produces a variety of Jeep and truck accessories.
 
“TAP’s products and services for customers in the off-road four-wheel-drive market correspond closely to our Off-Road Vehicle business,” Wine said in a statement. “Further, by broadening TAP’s proprietary product lines, expanding its retail distribution footprint, where appropriate, and cross-selling both companies’ extensive product offerings to a large combined installed base, we believe we will create significant value for out stakeholders.”
 
According to Polaris, TAP is the largest retailer and installer in the North American Jeep and truck accessory market, which is said to total more than $10 billion annually. In the 12-month period ending September 30, TAP’s revenue totaled $740 million and, in the last three fiscal years, TAP’s annual sales have grown 15 percent.
 
“We see tremendous opportunity for further growth as we become and integral part of the Polaris organization,” said Greg Adler, CEO of TAP, in a statement. “Combining TAP with Polaris’ aftermarket brand portfolio facilitates significant synergies, while Polaris’ financial resources provide the backing we need to pursue a variety of growth prospects we have identified across the organization.”
 
The stock market reacted favorably to the deal’s announcement as Polaris shares rose more than 3.5 percent from Tuesday’s close of $74.09. Polaris stock has been on a downward slide with its price nearly halved from the $122 it was worth a year ago. A streak of vehicle recalls due to fire risks is largely to blame for the company’s stock devaluation.
 
Polaris also lost one of its defining leaders last Saturday. Co-founder David Johnson passed away at 93, the Star Tribune reported.