BRP to accelerate its growth in China with the creation of a joint venture
VALCOURT, QC, June 12, 2014 /CNW Telbec/ – BRP (TSX: DOO) and its
long-time distributor in China, Smooth Marine Equipment Ltd (“Smooth
Marine”), will pursue together the growth of BRP’s business in China
through a joint venture structure.
“We have been operating in China for 14 years, a market where our
business has grown over 30% annually in the last three years,” said
José Boisjoli, president and CEO. “We sell all our product lines in
China and see good potential for Can-Am off-road vehicles and for
Sea-Doo watercraft. The joint venture structure will leverage the
in-market knowledge of our partner.”
The investment will further strengthen BRP’s presence and commitment to
the Chinese market and provide opportunities to accelerate dealer
expansion. BRP established a regional office in Shanghai in 2012 and
has since increased its network to 19 dealers with plans to increase to
30 within two years.
“Our knowledge of the local industry and BRP’s innovative products, such
as the Sea-Doo Spark watercraft, are a great combination,” said YY
Chen, owner of Smooth Marine. “We are confident this agreement will
help develop the powersports industry in China. BRP’s offering is
unique and fits well in the Chinese market. We are thrilled to bring
BRP’s promise of providing the ultimate powersports experience to
customers in China.”
Smooth Marine has been a BRP partner in China since 2002. As part of the
agreement, BRP will have a majority ownership stake in the new company.
The agreement will become effective in early 2015.
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 all-terrain and side-by-side
vehicles, Can-Am Spyder roadsters, Evinrude and Rotax marine propulsion
systems as well as Rotax engines for karts, motorcycles and
recreational aircraft. BRP supports its line of products with
a dedicated parts, accessories and clothing business. With annual
sales of over CA$3 billion from 105 countries, the Company employs
approximately 7,100 people worldwide.
Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo are
trademarks of Bombardier Recreational Products Inc. or its affiliates.