THIEF RIVER FALLS, Minn. (AP) — Arctic Cat Inc., which makes snowmobiles and all-terrain vehicles, said Wednesday it agreed to sell its plant in Madison, S.D., cutting 89 positions in an effort to streamline manufacturing.
The company did not disclose financial terms of the sale.
The plant does painting, welding and subassembly work which will be absorbed into Arctic Cat's plant in Thief River Falls, Minn. The company plans to hire 50 to 60 employees at the Minnesota plant, which now has a 1,500-person staff.
Workers at the Madison plant will be offered employment assistance and opportunities to work in the company's other plants, Arctic Cat said.
Arctic Cat expects the move to have no material effect its balance sheet, but expects to record a charge of a penny to 2 cents per share in the fiscal fourth quarter ending March 31.
The move is expected to save about $1 million annually longer term.
Shares of Arctic Cat added 63 cents, or 4 percent, to $16.59. The stock has traded between $15.50 and $20.77 over the past year.