Despite the turbulence in the financial markets, Bombardier recreational Products (BRP) and its controlling shareholders of its parent company have raised $130 million (CAN) to further strengthen BRP's financial position.
According to BRP, $30 million of reimbursable funds from Investissement QuÃ©bec (IQ) has been raised to support the company's R&D activities while $100 million has been raised by BRP's controlling shareholders and their affiliates, which includes a $50 million loan from the SociÃ©tÃ© gÃ©nÃ©rale de financement du QuÃ©bec (SGF) to support the company's operations.
“The power sports industry is suffering and times have recently been tough for BRP, but we have a solid plan going forward that is the result of the concerted efforts of all BRP stakeholders worldwide,” said JosÃ© Boisjoli, BRP's president and chief executive officer. ''We need to adjust to new business conditions resulting from the world economic crisis, while supporting our network and maintaining our brands through innovation.”
Last December, BRP announced a major company restructuring to reduce costs and increase efficiency. Overhead costs were reduced significantly as was the workforce, 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. 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,” said Boisjoli.