BRP Inc. Finalizes Secondary Offering, Strengthening Shareholder Position
BRP Inc. Finalizes Previous Secondary Offering
BRP Inc. (TSX: DOO) has officially announced the closing of its previously disclosed bought deal secondary offering. The significant transaction involved Bain Capital Integral Investors II, L.P. as the Selling Shareholder, selling 1,500,000 subordinate voting shares of BRP at a price of C$90.71 each, summing up to gross proceeds of C$136,065,000.
Details of the Offering
The subordinate voting shares were offered through a prospectus supplement, which was prepared for this event, along with the short form base shelf prospectus. This offering was carefully coordinated, ensuring adherence to the regulations set forth by securities authorities in Canada and the U.S. The compliance with the U.S./Canada Multijurisdictional Disclosure System was also maintained, allowing an efficient registration process.
All the net proceeds from the sale were directed to Bain Capital. Importantly, BRP did not receive any proceeds from this secondary offering. The underwriting of the shares was handled exclusively by BMO Capital Markets, which, notably, did not have an over-allotment option linked to this offering.
Impact on Shareholder Holdings
With the closure of this secondary offering, Bain and its affiliates now possess 10,496,629 multiple voting shares of BRP, accounting for around 14.35% of the total issued shares and approximately 24.39% of the overall voting power associated with BRP shares. This consolidation of shares by Bain indicates a strong commitment and belief in the future trajectory of BRP's business strategies.
About BRP and Its Market Position
BRP Inc. is renowned as a global leader in powersports products, showcasing over 80 years of innovation in the industry. Their extensive range of offerings includes popular brands such as Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am vehicles, and Quintrex boats. Additionally, BRP supplies Rotax engines for marine propulsion and other recreational applications.
By maintaining a dedicated focus on enhancing user experiences, BRP seeks to unlock thrilling adventures for consumers worldwide. The company's commitment extends toward sustainability, with ongoing developments in electric model offerings across their existing product lines. BRP boasts impressive annual sales figures, reaching $7.8 billion, and employs a workforce of approximately 16,500 passionate individuals as of early 2025.
Conclusion
With the completion of this secondary offering, BRP Inc. is positioned to advance its market presence while benefiting from strong shareholder backing. This move not only supports their financial structure but also strengthens the brand's future in a competitive industry.
Frequently Asked Questions
What was the purpose of the secondary offering by BRP?
The secondary offering primarily allowed Bain Capital to dispose of its subordinate voting shares while enabling BRP to maintain a strong market position.
How many subordinate voting shares were sold?
A total of 1,500,000 subordinate voting shares were sold during the secondary offering.
What was the price per subordinate voting share in the offering?
The subordinate voting shares were offered at a price of C$90.71 each.
Who underwrote the secondary offering?
BMO Capital Markets exclusively managed the underwriting of the subordinate voting shares in the offering.
What is BRP's approach toward sustainability?
BRP is committed to responsible growth and is actively developing electric models across its product lines to enhance sustainability.
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