Polaris Industries has announced that it has bought back 3.96 million shares of the company’s stock from Fuji Heavy Industries, for the tidy sum of $497.5 million — roughly 6% of Polaris’ total market capitalization.
Paying for the stock purchase with roughly $247 million in cash, and $250 in credit, the move is a response to Polaris’ continued push to develop its own engines in-house.
For some background, Fuji Heavy Industries was the sole-engine supplier to Polaris from 1968 until 1995, at which time Polaris began developing its own power plants.
Despite that shift nearly 20 years ago, Fugi has had an integral part of Polaris’ business up until this point, and in 2013 one in four engines in the Polaris model lineup was built by Fuji Heavy Industries.
For 2014 onward though, the use of Fuji engines is expected to drop as Polaris produces more of its own units.