Bombardier Announces Signature of Agreement for Sale of
Recreational Products Business
MONTREAL, QUEBEC--AUGUST 27, 2003 - 06:01 ET
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. This agreement was entered into by a
corporation formed by Bain Capital, members of the Bombardier
family and the Caisse de depot et placement du Quebec.
This transaction all but completes Bombardier's action plan
presented on April 3, 2003, a plan designed to restore the
Corporation's balance sheet and liquidity profile and focus on
the 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."
Bombardier's Board approved the agreement following a
recommendation by the independent committee chaired by L. Denis
Desautels and created for the purpose of supervising the sale
process for the recreational products business and reviewing the
related party transaction.
"As soon as our action plan was announced, members of the
Bombardier family expressed an interest in participating in the
process to ensure the stability and continuity of this heritage
asset. As a party to the group of buyers, they are meeting this
goal and we are pleased we have reached an agreement to sell the
business as a full entity, at a fair price and in a timely and
efficient manner that secures full value for all shareholders,"
he continued.
"We took appropriate steps to make certain that the rights of all
shareholders were fully protected through a process that involved
the highest standards of governance," concluded Tellier. The
Board received favourable fairness opinions from its own
financial advisor, UBS, and from Morgan Stanley, financial
advisor to the independent committee. Directors of Bombardier who
are members of the Bombardier family abstained from participating
in Board meetings in which the transaction was considered and did
not vote on the transaction.
Completion of this transaction is subject to certain purchase
price adjustments, execution of definitive acquisition and
financing documentation and to the approval of all required
governmental authorities and to other consents and other usual
conditions. It is expected that the transaction will be closed by
mid-fall 2003.
Bombardier Recreational Products designs, develops, builds,
distributes and markets Sea-Doo(R) watercraft and sport boats,
Ski-Doo(R) and Lynx(R) snowmobiles, Johnson(R) and Evinrude(R)
outboard engines, Evinrude direct injection and Evinrude
E-TEC(TM) technologies, Bombardier(TM) ATVs, Rotax(TM) engines
and karts, as well as utility vehicles.
Bombardier Inc., a diversified manufacturing and services
company, is a world-leading manufacturer of business jets,
regional aircraft, rail transportation equipment and motorized
recreational products. It also provides financial services and
asset management in business areas aligned with its core
expertise. Headquartered in Montreal, Canada, the Corporation has
a workforce of some 75,000 people and manufacturing facilities in
25 countries throughout the Americas, Europe and Asia-Pacific.
Its revenues for the fiscal year ended Jan. 31, 2003 stood at
$23.7 billion Cdn. Bombardier shares are traded on the Toronto,
Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).
(R),(TM) Trademarks of Bombardier Inc. or its subsidiaries. |
