BRP raises money to reinforce its financial position

VALCOURT, Québec – Despite the turbulence in the financial markets, Bombardier Recreational Products Inc. (BRP) and the controlling shareholders of its parent company, have raised CAN $130 million for the purpose of further strengthening BRP’s financial position, including:

  • $30 million of reimbursable funds from Investissement Québec (IQ) to support the
    company’s R&D activities, and
  • $100 million raised by BRP’s controlling shareholders and their affiliates, including a $50 million loan from the Société générale de financement du Québec (SGF) to support BRP’s operations, the company reported in a statement late yesterday.
  • "The powersports industry is suffering and times have recently been tough for BRP but we have a solid plan going forward, which is the result of the concerted efforts of all BRP stakeholders worldwide," said José Boisjoli, BRP's president and chief executive officer. ''We need to adjust to new business conditions resulting from the world economic crisis, while supporting our network and maintaining our brands through innovation.”

    In December 2008, BRP announced a major company restructuring to reduce costs and increase efficiency. Overhead costs were reduced significantly as was the workforce, some divisions were merged, and 2009 production was brought down by almost 30 percent to reduce inventory at the dealer level, according to BRP.

    ''Everybody contributed to ensure that BRP remains competitive and returns to growth rapidly. With these additional funds, we will have the option of buying back our debt and we will be in a position of even greater strength, to take advantage of opportunities when the global economy is back on track, "concluded Boisjoli.

    BRP’s portfolio of brands and products includes: Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and sport boats, Evinrude and Johnson outboard engines, direct injection technologies such as E-TEC, Can-Am all-terrain vehicles and roadsters, as well as Rotax engines and karts.

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