BRP raises funds to strengthen financial positionPosted on
Bombardier Recreational Products, and the controlling shareholders of its parent company, have raised $115.9 million to further strengthening BRP’s financial position through these difficult economic times.
BRP raised $26.7 million of reimbursable funds from Investissement Québec to support the company’s research and development activities. Another $89.2 million was raised by BRP’s controlling shareholders and their affiliates, including a $44.6 million loan from the Société générale de financement du Québec 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,” said José Boisjoli, BRP president and CEO, in a statement. ”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 work force, some divisions were merged, and 2009 production was brought down by almost 30 percent to reduce inventory at the dealer level.
”Everybody contributed to ensure that BRP remains competitive and returns to growth rapidly,” Boisjoli said. “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.”
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