arctic cat

The new owner of Arctic Cat plans to close it's Minneapolis headquarters in the North Loop by the end of this year.

The defense contractor Textron is buying the snowmobile maker Arctic Cat in a deal valued at about $247 million. Textron said Wednesday that it will pay $18.50 per Arctic Cat share, a 41 percent premium to its Tuesday closing price.

Arctic Cat is planning a major expansion project in St. Cloud. The plan includes the construction of a test track and a building addition. As part of the process, the St. Cloud city council approved the creation of a Tax Increment Financing District, as well as approving a Business Subsidy Agreement.

Arctic Cat is expanding its facilities in both St. Cloud and Thief River Falls. Arctic Cat officials have announced plans to invest nearly $27 million in its manufacturing facilities, which is expected to create about 50 new jobs.

An Arctic Cat dealership in Sauk Centre is crediting a new snowmobile chassis and improved four-stroke engines for part of the reason for increased sales so far this year.

Arctic Cat Inc. is voluntarily recalling about 16,500 snowmobiles because of a possible loss of control. Arctic Cat and the U.S. Consumer Product Safety Commission announced the recall Wednesday.

The St. Cloud City Council has approved a tax abatement plan with Arctic Cat. The engine manufacturer lost its JOB-Z status because it failed to create enough jobs setting up the need for a new tax relief agreement.