Bombardier Recreational Products Inc. (BRP), a privately held company, has raised CAN $130 million ($117.5 million) to support its operations.
Funds include CAN $30 million ($27.1 million) of reimbursable funds from Investissement Québec (IQ) to support the company's R&D activities, and CAN $100 million ($90.4 million) raised by BRP's controlling shareholders and their affiliates, including a CAN $50 million ($45 million) loan from the Société générale de financement du Québec (SGF) to support BRP's operations.
"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," says José Boisjoli, BRP's president and CEO.
The funding scheme comes seven months after BRP announced a major company restructuring to reduce costs and increase efficiency. Overhead costs were reduced, divisions were merged, the workforce was reduced by 980 employees, and 2009 production was brought down by almost 30 percent to reduce inventory at the dealer level.
'"We need to adjust to new business conditions resulting from the world economic crisis, while supporting our network and maintaining our brands through innovation," Boisjoli says. "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."
BRP's portfolio of brands and products include Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and sport boats, Evinrude and Johnson outboard engines, Can-Am ATVs and roadsters, as well as Rotax engines and karts. The company operates manufacturing facilities on three continents and distributes product to more than 80 countries.
—Submitted by Guido Ebert