Polaris Industries Inc. announced a renewal of its U.S. joint venture with Commercial Distribution Finance (CDF), a business of GE Capital, through 2022. The terms of the extension are consistent with the prior agreement. The joint venture, Polaris Acceptance (PA), was formed in 1996 and the current agreement was to expire in February of 2017. In addition, Polaris has extended the term of its Canadian dealer financing arrangement with CDF through 2022.
"For nearly 20 years, this mutually successful partnership has provided a valuable source of wholesale floor plan financing along with high-quality service to Polaris dealers," remarked Polaris Chairman and Chief Executive Officer Scott W. Wine. "This extension signals our commitment to offer a source of continued dealer financing stability through 2022. In the interim, our partner CDF will transition to new ownership under Wells Fargo, a move that they expect to close in the first quarter of 2016. PA will remain a competitive tool in our offering to dealers, while supporting Polaris’s working capital, liquidity, and balance sheet strength."
"We are honored to continue our relationship with Polaris,” said Steve Battreall, president and CEO of CDF. “We are dedicated to providing their North American dealers with flexible financing solutions and excellent customer service in order to help them continue to grow today and in the years ahead.”
Currently more than 1,700 dealers participate in the programs across North America, often with multiple Polaris brands in their dealerships.
Polaris is a recognized leader in the powersports industry with annual 2014 sales of $4.5 billion.
Polaris designs, engineers, manufactures and markets innovative, high quality off-road consumer and military vehicles, including all-terrain vehicles (ATVs) and the Polaris RANGER® and RZR® side-by-side vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles.
Commercial Distribution Finance (CDF) provided $46 billion in financing for more than 40,000 dealers and more than 2,000 distributors and manufacturers globally in 2014. CDF operates in 60 countries and provides inventory financing solutions, service and intelligence through in-depth industry expertise and commitment. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management, and related financial products. On October 13, 2015, Wells Fargo agreed to acquire CDF from GE Capital as part of a larger transaction that is expected to close in the first quarter of 2016.