Beaudier, Bain Capital, CDPQ to sell up to $498.5M BRP shares

BRP Inc. (TSX: DOO) has entered into a bought deal secondary offering of 10,000,000 subordinate voting shares at $43.35 per subordinate voting share for gross proceeds to selling shareholders of $433,500,000.

The selling shareholders are Beaudier Inc. (3,131,121 shares) and 4338618 Canada Inc. (2,087,271 shares) (Beaudier Group), Bain Capital Luxembourg Investments S.à r.l. (4,017,091 shares), Caisse de dépôt et placement du Québec (CDPQ) (764,518 shares).

The offering is being led by BMO Capital Markets and RBC Capital Markets.

Beaudier Group, Bain Capital and CDPQ have granted the underwriters an option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,500,000 Subordinate Voting Shares at the offering price to cover over-allotments, if any.

The transaction is expected to close on or about October 17, 2017.

Beaudier Group currently holds, collectively, 38,069,457 multiple voting shares, representing approximately 36.9% of the issued and outstanding shares and approximately 48.8% of the voting power attached to all of the shares.

Following the closing of the offering (assuming no exercise of the over-allotment option), Beaudier Group will hold, collectively, 32,851,065 multiple voting shares, representing approximately 31.8% of the issued and outstanding shares and approximately 47.2% of the voting power attached to all of the shares.

Bain Capital currently holds 29,305,669 multiple voting shares, representing approximately 28.4% of the issued and outstanding shares and approximately 37.6% of the voting power attached to all of the shares.

Following the closing of the offering (assuming no exercise of the over-allotment option), Bain Capital will hold 25,288,578 multiple voting shares, representing approximately 24.5% of the issued and outstanding shares and approximately 36.3% of the voting power attached to all of the shares.

CDPQ currently holds 5,577,346 multiple voting shares representing approximately 5.4% of the issued and outstanding shares and approximately 7.2% of the voting power attached to all of the shares.

Following the closing of the offering (assuming no exercise of the over-allotment option), CDPQ will hold 4,812,828 multiple voting shares, representing approximately 4.6% of the issued and outstanding Shares and approximately 6.9% of the voting power attached to all of the shares.

BRP (TSX:DOO) is a global leader in the design, development, manufacturing, distribution and marketing of powersports vehicles and propulsion systems. Its portfolio includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am off-road and Spyder vehicles, Evinrude and Rotax marine propulsion systems as well as Rotax engines for karts, motorcycles and recreational aircraft.

photo credit: BRP

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.