SAINT-BRUNO, Quebec, Canada – The completion of the sale of Bombardier Recreational Products was confirmed yesterday for the amount of $960 million Cdn (718,455,360 U.S.) in a joint press release from Bombardier and its new owners, Bain Capital and the Caisse de depot et placement du Quebec.
With the finalization of the acquisition, the new company, Bombardier Recreational Products Inc., also has named a new Chairman of the Board and President and CEO.
The investor group nominated Laurent Beaudoin as Chairman of the Board and Jose Boisjoli and President and CEO.
“We are very pleased to have completed the purchase, and look forward to the challenge of ensuring our company’s future growth,” said Mr. Beaudoin. “Mr. Boisjoli has distinguished himself during his 15 years with Bombardier Inc.’s recreational products group. He has repeatedly proven that he has the knowledge, judgment and vision to successfully manage this new company.”
“I am honored by the trust the investor group has placed in me,” added Boisjoli. “I embrace the opportunity to lead Bombardier Recreational Products because I firmly believe that together with the management team, our employees and our dealer networks, we are capable of reaching new heights for our company while continuing to deliver the highest customer satisfaction.”
In a letter packaged with “The Real Deal” newsletter publication that Bombardier has been using to update its “friends” on the sale and to dispel rumors, Boisjoli highlighted a few notes of the agreement.
According to those highlights, the new company will acquire all of the brand names associated with its products (Ski-Doo, Sea-Doo, Lynx, Johnson, Evinrude, Rotax, etc.); will be allowed the use of the “Sprocket” logo and the Bombardier name mainly on the products and on the marketing materials (details of this agreement will be forthcoming); will have all dealer, supplier and other contracts transferred to it; and will leave, unchanged, all dealer, supplier and other contracts with subsidiaries outside of Canada unchanged.
“As you are no doubt aware, up until 1997, our group manufactured snowmobiles, personal watercraft and sport boats,” Boisjoli wrote in his letter. “As a result of a diversification drive, we now boast a major product portfolio … which further enhances our product offering.
“As an independent company, we will now have greater control over our destiny. We will be in a position to pursue continued innovation and offer state-of-the-art products that clearly reflect our reputation with our clients all over the world. This is one of the reasons I agreed to lead this new company.”
With that in mind, Boisjoli said that he will review the corporate structure and make changes to it as early as the beginning of January. The objective, he said, will be to increase synergies that already exist between the companies products. And in the spring of next year, the company will be adopting a new corporate signature as well as a new logo, which, he says, will essentially be an evolution of the current version.
“I am well aware that 2003 has been an eventful year,” Boisjoli continued. “Therefore, on behalf of the new owners, please allow me to express my most sincere thanks for your support and loyalty to our company. Your tireless efforts have allowed us to mark a new milestone in our company’s history.”
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