Polaris Industries Inc. just announced this morning that it has agreed to purchase Transamerican Auto Parts Company (“TAP”), a privately held, vertically integrated manufacturer, distributor, retailer and installer of off-road Jeep and truck accessories, for $665 million. In a press release sent out this morning, Polaris notes the purchase price implies “a multiple of approximately 9.0 times TAP’s EBITDA for the 12 months ended September 30, 2016.”
TAP sells and installs an extensive line of accessories for Jeep and truck enthusiasts, including products manufactured under its seven aftermarket brands that include Pro Comp, Rubicon Express, Smittybilt, Poison Spyder, G2, LRG and Trail Master. Transamerican Auto Parts is the largest retailer and installer in the North American market, selling through its own retail and on-line network while also supporting numerous independent accessory retailers/installers. In the last year, ending September 30, 2016, TAP has generated approximately $740 million in sales.