BRP Inc. announces that they are selling their marine businesses for sale as they are now shifting their focus on investing more in their power sports products.
BRP announced last October 17, 2024, that they are in the process of the sale of their boat makers brands Alumacraft, Manitou, Telwater (Quintrex, Stacer, Savage, and Yellowfin), and their accompanying marine parts, accessories, and apparel. This initiative excludes their Sea-Doo personal watercraft, Sea-Doo Switch pontoons, and jet propulsion systems.
The decision to refocus on power sports products is driven by the company's strategic plan to concentrate on its core activities. This crucial move is done in response to the current economic challenges.
The boating industry is currently facing challenges such as production and inventory issues, as well as higher interest rates impacting consumer purchasing decisions for recreational products.
BRP has carefully evaluated its priorities and aims to direct its efforts and investments towards its Powersports Year-Round Products, Seasonal Products, Parts, Accessories, and Apparel portfolio, as well as its Original Equipment Manufacturer (OEM) Engine business.
"After thoughtful consideration and taking into account the dynamics of both the marine and power sports industries, we have made the decision to reinforce our commitment to our core Powersports activities and proceed with the sale of our Marine businesses." Jose Boisjoli, President and CEO of BRP, said.
BRP anticipates completing the sale of its marine businesses, including all boat makers, and its marine parts, accessories, and apparel businesses by May 2025.
“Over the past few years, we have built a solid foundation by investing in the development of innovative Marine products and upgrading the production facilities. As such, we believe that these iconic brands can offer attractive value creation opportunities for a new owner.”
The company's objective is to strengthen its position as a leading global Powersports OEM. BRP is confident that this strategic decision will enable it to seize growth opportunities within the power sports industry and enhance its long-term success by improving its margin profile.
BRP expects the process to be completed in the first quarter of Fiscal Year 2026 and does not anticipate any impacts on its current Fiscal Year 2025 guidance. However, they will not provide comments on the progress.
BRP has engaged National Bank Financial Inc. to facilitate the sale process.
In 2019, BRP acquired 80% of Australia-based Telwater, a manufacturer of aluminium and fishing boats, for $113 million and acquired the remaining ownership in 2021. Additionally, BRP purchased Minnesota-based Alumacraft, an aluminium fishing boat manufacturer, for $81 million, and Triton Industries, the builder of Manitou pontoon boats in Michigan, for $97 million in 2018.
Source: |1| 2|