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"Bombardier Inc. announced today that it has reached an agreement in principle for the sale of its recreational products business for an aggregate purchase price of $1.225 billion Cdn. This agreement was entered into by a corporation formed by Bain Capital, members of the Bombardier family and the Caisse de dépôt et placement du Québec. This transaction all but completes Bombardier’s action plan presented on April 3, 2003, a plan designed to restore the Corporation’s balance sheet and liquidity profile and focus on the aerospace and transportation businesses.

Bain Capital will hold 50% of the new corporation, the Bombardier family 35% and the Caisse de dépôt et placement du Québec 15%. Mr. Laurent Beaudoin, spokesperson for the Bombardier family, said that he was proud to have attracted such high-calibre investors to form the acquisition group.

"We are very happy to have the opportunity to continue to be associated with this heritage asset that was at the foundation of the development of one of Canada's largest companies," said Mr. Beaudoin. "With the help of our 7,600 employees, we intend to reinforce our leadership in our current business sectors, as well as develop new market niches." Mr. Beaudoin stressed the high quality employee relations at all levels at Bombardier Recreational Products.

Bombardier’s Board approved the agreement following a recommendation by the independent committee chaired by L. Denis Desautels and created for the purpose of supervising the sale process for the recreational products business and reviewing the related party transaction.

“As soon as our action plan was announced, members of the Bombardier family expressed an interest in participating in the process to ensure the stability and continuity of this heritage asset. As a party to the group of buyers, they are meeting this goal and we are pleased we have reached an agreement to sell the business as a full entity, at a fair price and in a timely and efficient manner that secures full value for
all shareholders,” he continued.

Bain Capital, which has more than $23 billion Cdn. in assets under management, has strong experience in a variety of industries and with "carve- out" transactions in which non-core businesses or assets of corporations are purchased by private investors. With a 19-year investment history, the firm has made a number of investments in retail and consumer products companies, including Shoppers Drug Mart, Sealy, Domino's Pizza, and Staples.

"Bombardier Recreational Products is known for manufacturing innovative, exciting and quality products, and has an extensive catalog of strong brands that resonates extremely well with consumers," said Matt Levin, Managing Director at Bain Capital. "We look forward to building on Bombardier Recreational Products' successful 60-year history and to the company's long term strategic growth potential as an independent business."

The Caisse de dépôt et placement du Québec is a financial institution that manages funds for public and private pension and insurance plans. The Caisse strives to obtain an optimal financial return for its depositors and clients. Through CDP Capital, the leading fund manager in Canada with almost $130 billion Cdn. of assets under management, it invests in the main liquid markets as well as in private equity and real estate.

"Our analysis of the new company's potential was conclusive and consistent with that done by the private investors involved in the transaction. Moreover, the involvement of a major American private equity firm, Bain Capital, and that of the Bombardier family are important factors in the company's success," stated Henri-Paul Rousseau, Chairman and Chief Executive Officer of the Caisse de dépôt et placement du Québec. Mr. Rousseau also said that the investment was in line with the Caisse's role as a fund manager holding minority interests.

Completion of this transaction is subject to certain purchase price adjustments, execution of definitive acquisition and financing documentation and to the approval of all required governmental authorities and to other consents and other usual conditions. It is expected that the transaction will be closed by mid-fall 2003".

I know there was a topic on this earlier, with some speculation, so I thought I would pass this on.
 

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I was getting curious about that..
 

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It's good to hear that the Family still has some part in the company. It just wouldn't be the same without them owning a part of it.
 

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Originally posted by 98mxzx440
[br]thats preety cheap...only 1 mil!
Read it again! He said BILLION, of course it was canadian so it would be a little less in american dollars, but not much
 

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Discussion Starter · #7 ·
Yeah that would still be around 750 million US, depending on what the exchange rate is...either way still not chump change!
 

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so from what I just had read , nobody else bought Bombardier Inc. out right? its part of family that owns Bombardier Inc. so not john deere or polaris or harley davidison or honda those kind of rumors that I have been hearing for last several months. well finally I am glad thats over with! no more rumors!! :)
 

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Discussion Starter · #9 ·
Nope Bain Capital is who bought it, but now own 50% of the Bombardier family...with Bombardier only owning 35% now. Kind of weird..
 

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My wife works for Bombardier in the Johnson/Evinrude plant. Everyone there was glad that the family was part of the purchasing group.
The main thing she worried about was being bought out by a company and then having each division being sold off individually. Not real good for job security.
 

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Originally posted by Alaskangold
[br]Nope Bain Capital is who bought it, but now own 50% of the Bombardier family...with Bombardier only owning 35% now. Kind of weird..
Not to be a "know-it-all" but the way I understand it is that Bain Capital, an investment firm, owns 50% of the Rec. Division (Not the family members, they were never up for sale. That's illegal in Canada.) The Bombardier family, the family members, not a company, owns 35%. The remaining 15% is owned by a Quebec Pension and Insurance Fund Management Group. The Bombardier Company no longer owns any part of the Rec. Division.

Being a Skidoo Fanatic, I too am glad that the Bombardier family is still a major entity at the helm. They appear to have a genuine interest in the long term viablity of the company. I hope Bain Capital has the same interest at heart, not just profit for their shareholders. I'm asuming that Caisse de dépôt et placement du Québec has the same "PRIDE IN HERITAGE" that the French are known for, that they'll do what it takes to keep the Rec Division the viable entity it has become known for.

Jeff
 

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Discussion Starter · #12 ·
Originally posted by trailblazer
[br]
Originally posted by Alaskangold
[br]Nope Bain Capital is who bought it, but now own 50% of the Bombardier family...with Bombardier only owning 35% now. Kind of weird..
Not to be a "know-it-all" but the way I understand it is that Bain Capital, an investment firm, owns 50% of the Rec. Division (Not the family members, they were never up for sale. That's illegal in Canada.)
Now after re-reading the first part of the article, I see what your saying....guess I just kind of skimed it the first time, thank for pointing that out[;)]
 

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Discussion Starter · #14 ·
Yeah that's what I heard also, at least that they had bid on it......But as you can see that's not how it worked out....
 

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When it came up for sale Bombardier spokesmen said that "We will not sell to a direct competitor." Being that Honda makes ATVs and Watercraft, they couldn't bid, Polaris for obvious reasons, along with a few other companies because they were current competition and they believed that it would give them too much of a monopoly of sorts.
 
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