skidoo sale could be completed this summer

A Ski-Doo spokesman told American Snowmobiler editor Jerry Bassett that he feels that a sale of the Bombardier Recreational Products Group could be completed later this summer. The spokesman noted that it would be unlikely that the group would be sold to a competitor in either the snowmobile, watercraft or ATV markets as such a sale would raise the specter of antitrust investigations, which could delay proceedings for up to two years.

In earlier public statements, Bombardier's chief executive, Paul Tellier, has indicated that a quick sale is anticipated.

In the 1970s when Bombardier attempted to purchase the Polaris group from Textron, the US Department of Justice created concerns of a monopoly ownership and possible restraint of trade in the snowmobile market if the deal had gone through. As history would indicate, the sale did not go through.
Current Bombardier ownership does not want to impede its rush to acquiring a quick infusion of cash to bolster its desire for improving cash flow. That would seem to eliminate companies such as Polaris and Arctic Cat as possible suitors and suggest that a Bombardier family-led group could be the most viable alternative.

Our source noted that the motorsports group is an attractive purchase as the division is showing a healthy profit and has products that, by and large, are leaders in their markets. The spokesman pointed out that Ski-Doo upped its market share in North America by 3.5 percentage points to more than 33 percent while Polaris saw its share slip to just under 30 percent. Sea-Doo is the top selling PWC and the new ATV group has shown strong growth with its newest product offerings.

Stay tuned as this story unfolds over the summer. Notes AmSnow's editor, "This is the biggest story in snowmobiling since Textron sold Polaris and Arctic Cat went bankrupt. Who would have ever thought that Bombardier would ever divest itself of its Ski-Doo heritage?"