BRP Inc. says it is planning an offering of subordinate voting shares in the Quebec-based maker of snowmobiles, personal watercraft and all-terrain vehicles.
The company said it believes the outlook for the industry is positive due to the improving economic environment, growth in new product lines and growth in international markets.
"Industry volumes are expected to be favourably impacted by improvements in the economic environment," the company said in its preliminary prospectus.
"Management also expects volumes to increase as consumers choose to pursue new and replacement vehicle purchases delayed during the recent economic downturn."
In addition to Ski-Doo, BRP also makes Lynx snowmobiles, Sea-Doo watercraft and boats, Can-Am all-terrain vehicles and Evinrude outboard engines.
The company did not say how many shares it planned to sell or how much they would cost.
However, BRP says it will also issue multiple voting shares to its current owners who will continue to have significant influence over the company.
Increased revenue, profits
The business was spun off from Bombardier Inc. about 10 years ago when it was sold to members of the Bombardier and Beaudoin family, U.S. private equity firm Bain Capital and the Caisse in for $960 million in 2003.
The company is currently owned by a subsidiary of Bain Capital, the Beaudier group, and the Caisse de depot. Bain owns half the equity, the Beaudier group has a 35 per cent stake and the Caisse has 15 per cent.
Beaudier Inc. is a family-owned company controlled by Laurent Beaudoin, who is a former CEO of Bombardier Inc. and a son-in-law of Joseph-Armand Bombardier, the Quebec inventor who founded the company.
According to BRP’s preliminary prospectus, obtained through DisclosureNet.com, it earned $2.9 billion in revenue and a profit of $121 million in the financial year ended Jan. 31.
That compared with a revenue of $2.65 billion and a profit of $83.5 million in the financial year ended Jan. 31, 2012.
Based in Valcourt, Que., BRP has approximately 6,800 employees around the world.
