Bombardier Inc. announced today that it has reached an agreement in principle for the sale of its recreational products business for an aggregate purchase price of $1.225 billion Cdn.
According to a statement, this transaction all but completes Bombardier’s action plan presented on April 3, 2003, which was designed to restore the Corporation’s balance sheet as well as direct focus on Bombardier’s aerospace and transportation businesses.
‘Earlier this year, we completed a successful equity issue and announced the divestures of our Defence Services unit, Belfast City Airport and Bombardier Capital’s business aircraft portfolio,’ said Paul M. Tellier, President and Chief Executive Officer. ‘Once fully completed, this plan will have generated in excess of $2.5 billion Cdn, well over the initial target of $2 billion Cdn.’
Completion of this transaction is subject to certain purchase price adjustments, execution of definitive acquisition and financing documentation and the approval of all required governmental authorities. It is expected that the transaction will be closed by mid autumn 2003.
Bombardier Recreational Products designs, develops, builds, distributes and markets a range of products including sport boats snowmobiles, outboard engines and utility vehicles.