BRP (Bombardier Recreational Products) was acquired in 2003 by a consortium of investors, which included Bain Capital, the Bombardier Family, and Caisse de dépôt et placement du Québec.
The Acquisition Details
In 2003, Bombardier Inc., a Canadian multinational aerospace and transportation company, strategically divested its recreational products division, Bombardier Recreational Products (BRP). This move allowed Bombardier Inc. to focus on its core aerospace and rail businesses. The recreational products arm, responsible for iconic brands like Ski-Doo snowmobiles and Sea-Doo personal watercraft, was sold for a significant sum.
The buyers were a powerful group of financial and historical stakeholders:
- Bain Capital: A leading global private equity firm.
- Bombardier Family: The founding family of Bombardier Inc., maintaining a significant stake in the recreational products business.
- Caisse de dépôt et placement du Québec: One of North America's largest pension fund managers.
The transaction was valued at $875 million, reflecting the considerable market value of BRP's diverse portfolio of recreational vehicles and engines.
Ownership Structure at the Time of Acquisition
The ownership stakes of the acquiring parties were clearly defined, illustrating a strategic partnership between financial investors and the founding family.
| Investor Group | Ownership Stake |
|---|---|
| Bain Capital | 50% |
| Bombardier Family | 35% |
| Caisse de dépôt et placement du Québec | 15% |
This ownership structure allowed BRP to operate as an independent entity, fostering its growth and innovation in the recreational vehicle industry. The company, officially named BRP Inc. (TSX: DOO), has since become a global leader in designing, developing, manufacturing, distributing, and marketing powersports vehicles and propulsion systems.
For more information about the company's history and current operations, you can visit the Bombardier Recreational Products Wikipedia page.
