ST. CLOUD -- The new owner of Arctic Cat plans to close its Minneapolis headquarters in the North Loop by the end of this year.

St. Cloud EDA Director Cathy Mehelich says 60 affected employees will be offered positions here in St. Cloud, where Arctic Cat runs an engine plant and office. In a statement sent to Mehelich spokesman Brandon Haddock, for Textron Inc, who bought Arctic Cat in March for $247 million says the company is taking steps to plan for the future.

"Since Textron bought Arctic Cat we've been deciding the best path forward to integrate our companies and optimize our operational footprint."

Haddock tells Mehelich employees were told of the decision Monday. He's unsure how many will make the move, though those living outside a 50-mile radius of St. Cloud will be offered a relocation package. Also the company is moving production of its off-road vehicle - The Stampede - to Thief River Falls, and the vehicle's engine to St. Cloud.

Arctic Cat has been expanding in the St. Cloud area for the past few years, and this move comes after the company moved its headquarters from Plymouth to downtown Minneapolis.