Polaris Continues Shopping Spree, Acquires Hammerhead Off-Road
If this were the equivalent of a Black Friday sale, Polaris Industries is reminding everyone just how strongly it can flex its credit card. The motorcycle manufacturer, among other things has announced its latest acquisition, confirming that it has acquired HH Investment Limited, a Shanghai-based company that sells gas-powered go-karts and light utility vehicles. If you’re not familiar with the company, then you might recognize it by the name it uses in the US: Hammerhead Off-Road.
So basically, Polaris Industries is the new parent company of Hammerhead, making it the former’s second major acquisition in as many months. Last month, the firm also brought Brammo’s EV development division, further strengthening its position in the electric motorcycle market. Oh, the company also owns Indian Motorcycles and Victory Motorcycles.
What’s next? Is it buying Gas Gas, too?
That much is less certain, but what’s becoming evidently clear is that Polaris is using it financial might to expand its business and cover as much of the motorcycle industry as possible. With the purchase of HH Investment Limited, the company can now turn its sights into building and expanding its off-road lineup while also gaining significant entry in the Chinese market.
You can’t blame Polaris for taking advantage of the game because it’s got the means to do so. Hopefully, these new purchases translate to a successful business move by the company, now and in the future. That will only grow the bike and off-road industries, and that’s going to be good for all of us.
Click "continue reading" to read more about Polaris’ acquisition of Hammerhead Off-road.
Why it matters
While it may be a little premature to consider this transaction as a home run for Polaris Industries, the mere fact that it’s making all this purchases shows that it wants to expand its business reach in segments that it had little to no presence before.
You could make the case that buying into Brammo’s EV business was the beginning of Polaris’ venture into electric motorcycles, something that was given more credence when it reportedly filed a trademark of the name "Victory Charger".
This time around, Polaris’ purchase of Hammerhead could be identified as a way for the company to not only expand on its off-road reach, but also take advantage of the latter’s ties to China to bring its other motorcycle brands in that market.
It’s a solid move if that turns out to be the case. For now, though, all we can really go by is that Polaris is in full buyer mode. Who really knows what it’s next purchase is going to be? At this point, I wouldn’t put anything past the company, including my joke about buying Gas Gas.
It’s not being talked about as a potential buyer, but would you be shocked if it ended up being in some kind of negotiations? I certainly wouldn’t.
Source: Ultimate Motorcycling