BRP, the Canadian manufacturer of powersports products including Can Am side-by-sides, ATVs and watercraft as well as Ski-Doo snowmobiles is planning an initial public offering (IPO) on the Toronto Stock Exchange. Ten years ago Bombardier sold the business lines to private investors, the largest being private equity firm Bain Capital with about a 50% stake. The remaining shareholders include the founding family run Beaudier Group with around 35% of the company and pension fund manager Caisse de dépôt et placement du Québec with around 15%. According to the prospectus, “The three shareholder groups are staying invested in the near term and will control all of the company’s multiple-voting shares,….The offering is for subordinate voting shares, which have one vote each compared to the six votes for the multiple-voting stock.”

Originally an IPO was to be completed about five years ago but the recession put it on hold.  Now, with side-by-side market leading the way, the environment is much more favorable as evidenced by the recent stock runs of Polaris and Arctic Cat. The company plans to raise $250 million with the IPO. The funds raised will primarily be used to   payoff debt. According to company financials BRP had sales of $2.9 billion and profit of $121 million for the last fiscal year that ended on January 31, 2013. Learn more:  Financialpost.com