BRP to acquire the Shawinigan operations of Kongsberg Inc.
by BRP 9 Aug 2022 07:32 PDT
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BRP Inc. (TSX:DOO; NASDAQ:DOOO) announced today that it has entered into a definitive agreement with Kongsberg Automotive ASA and its subsidiary Kongsberg Inc. (henceforth referred to as KA) to acquire substantially all the assets related to its powersports business located in Shawinigan, Quebec ("KA Shawinigan").
As a leading player in electronic and mechatronic product development and manufacturing, KA Shawinigan is a long-standing supplier of BRP.
"Over the years, we have built a strong relationship based on trust and shared values with KA Shawinigan. We are very enthusiastic about this acquisition, which is in line with our future product strategy, particularly our electrification plan. It will enable us to gain further expertise in mechatronics and bolster our innovation capabilities. We look forward to welcoming over 300 highly trained and skilled employees who are already specialized in developing and manufacturing key components for many of the BRP product lines," said José Boisjoli, President and Chief Executive Officer of BRP.
"KA and BRP have a long history of collaboration. KA components are an integral part of many BRP products, and, with this transaction, we are pleased to enable them to integrate this business. This transaction will provide KA with the net proceeds to explore new target markets, drive innovation and attract new business development opportunities. I look forward to the work that our Shawinigan colleagues do at BRP and wish them all the best," said Joerg Buchheim, President & CEO of KA.
"Furthermore, by integrating the operations of KA Shawinigan, we expect to gain further agility in addressing supply chain challenges and to optimize our productivity," added Mr. Boisjoli.
The anticipated acquisition is subject to customary closing conditions and is expected to be completed by the end of the third quarter of this fiscal year. BRP plans on providing ongoing employment to KA Shawinigan employees who are part of the acquisition and to continue the operations of this entity at its location in Shawinigan.