BRP to accelerate its growth in China with the creation of a joint venture
June 17, 2014
Filed under News
Valcourt, Québec, Canada, June 12, 2014 – 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.