Arctic Cat: Successfully Communicate a Product Divestiture

Arctic Cat planned to discontinue production of its personal watercraft (PWC) line due to insufficient profitability, but was concerned about the potential negative wake of this news with its employees, dealers and the investment community. Arctic Cat turned to Padilla Speer Beardsley to develop a product divestiture plan. Prior to the announcement, PSB thoroughly prepared Arctic Cat management on their presentations to ensure message consistency and accuracy, and also provided on-site counsel. Arctic Cat constituents greeted the divestiture announcement positively, and its CEO stated that the company had never before been as well prepared to communicate a business announcement.