Privately-owned Canadian powersports manufacturer BRP — which includes Can-Am ATVs and Spyder road trikes in its product portfolio as well as Ski-Doo snowmobiles, Sea-Doo personal watercraft and Rotax proprietary engines — is launching an initial public share offering.
Hived off from big-league train and aircraft maker Bombardier in 2003, the Bombardier Recreational Products division was sold to a group of investors including the Bombardier and Beaudion families (who originally founded the former parent company), private equity operator Bain Capital and pension fund manager Caisse de Depot et Placement du Quebec.
This group is now profitably cashing in part of its investment by floating a tranche of 12.2 million BRP shares on the Toronto Stock Exchange. The public offer is expected to raise about £160m.
In its last full financial year, BRP declared revenue of £1.87bn and a £77.9m net profit. The business sells into 105 countries and employs about 6800 staff, with factories in Canada, Mexico and Austria.
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BRP has raised £172.3m through its initial public offer of 12.2 million subordinate voting shares in the company. BRP is therefore now listed on the Toronto Stock Exchange.
Proceeds will be used to pay down BRP’s debt. The offer underwriters also have an option of 1.83 million additional shares. If this is taken up, it will yield a further £25.8m for working capital and general corporate purposes.
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