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http://www.montrealgazette.com/business/manufacturer+launch/8256475/story.html#ixzz2Qy02jwv8

MONTREAL - A decade after being sold off by Bombardier Inc. to pay down debt, recreational vehicle group BRP Inc. is going public - again to retire debt.

Details were sketchy for the Valcourt-based firm's initial public offering filed Wednesday - other than that it would not pay dividends, that it would have a dual-class structure and that Bain Capital and "Beaudier Inc." - the Bombardier and Beaudoin families - would retain multiple voting shares that will grant them control over the public company. Each multiple voting share will count as six votes. The families exercise control over rail and aircraft manufacturer Bombardier through a similar multiple voting share arrangement.

Bain Capital, formerly headed by defeated Republican presidential candidate Mitt Romney, owns 50 per cent of the company, while the Bombardier/Beaudoin family holds 35 per cent and the Caisse de dépôt et placement du Québec has the other 15 per cent. The three partners will hold all the multiple voting shares.

Bombardier sold the division for $960 million in December 2003.

The filing said that BRP will use part of the proceeds to pay down an unspecified amount of the firm's long-term debt of $1.09 billion, which includes a $146-million (U.S.) loan due in June. It also discloses that the Caisse lent BRP $74.9 million in January.

BRP spokesperson Pierre Pichette said he could not make any statement or add any information until further notice, as the offering advances.

The prospectus filed by the company said a per-share price had been determined after talks between the partners and the underwriters, but it did not disclose that issue price, the total amount the offering is expected to fetch or the timeline for the IPO.

BRP said it would also use the unspecified proceeds to expand and the prospectus noted the growing importance of "low-cost countries."

The company shut down its jetboat division in Benton, Ill., last September, laying off about 350 people. In May, it announced it would transfer production of all its watercraft to BRP's Mexico operations in Juarez and Queretaro by 2015. The production migration will abolish 500 Valcourt positions, but BRP expected to do this through attrition and retirement rather than layoffs.

The filing claimed for BRP the leading position worldwide for Ski-Doos and Sea-Doos, its snowmobile and watercraft vehicles, No. 2 position for its Can-Am side-by-side four-wheelers and No. 4 spot for its Evinrude outboard engines and Can-Am all-terrain vehicles. Its Spyder three-wheel motorcycle-like roadster has no rival, it said. BRP sells its brands in 105 countries.

Valcourt, the seat of the Bombardier rail, aircraft and powersports empire, now employs about 3,000 of BRP's global workforce of 6,800 employees. There, founder and inventor Joseph-Armand Bombardier laid the ground for the multinational early last century, rigging an old Ford model car with a propeller - the precursor to his eventual invention of the snowmobile. After his death, his son-in-law Laurent Beaudoin diversified the company into rail equipment and aircraft.

The IPO is underwritten by BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., UBS Securities Canada Inc. and Citigroup Global Markets Canada Inc.

[email protected]

© Copyright (c) The Montreal Gazette

Read more: http://www.montrealgazette.com/business/manufacturer+launch/8256475/story.html#ixzz2R0iETHXG
 

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Wow, is this posting TABOO? 100 views and no comments? This is pretty big stuff to us, and am hoping to here what everybody thinks about it.Thats a lot of debt due in June and they just got $75 mil from the Caisse in January.I just don't like stuff going to mexico for production, either. Thoughts?
 

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Wow, is this posting TABOO? 100 views and no comments? This is pretty big stuff to us, and am hoping to here what everybody thinks about it.Thats a lot of debt due in June and they just got $75 mil from the Caisse in January.I just don't like stuff going to mexico for production, either. Thoughts?
This has already been on here:

http://www.dootalk.com/forums/topic/551510-skidoo-goes-public-with-shares/

Pretty sad the author of the article had to even mention Mitt Romney because he was not with Bain Capital at the time of the deal. The fact that BRP is going to offer an IPO has nothing to do with him. The media political bias just shows through no matter what.

The labor costs are driving companies to areas that allow them to make a profit, i.e. both BRP and Polaris are there. Is it what we'd like to see? No, but the health of the company is important, especially to investors.

As long as they have the family and the Quebec government there to support the company, I think they'll be fine. I can't remember what the original agreement was with Bain but I'm sure they want the loan paid up some way unless they'll renegotiate the term.
 
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