How do I knockout arched text?

Hi guys and girls,

I need to knockout my arched text onto an object. This is the process I have been trying:

• Effect > Warp > Arch > Apply
• I then select the text and the object together and click 'Divide' in the pathfinders window.

However when I click divide the text reverts back to being a straight line of type. I really need the arch effect to be knocked out.

Any suggestions?

Thanks guys