Canadian transport equipment maker Bombardier - parent company of Shorts - will sell its recreational products business for 1.23 billion Canadian dollars (€0.81 billion) to a company comprising two funds and members of the Bombardier family.
It was the highest offer by about C$200 million, said Mr Paul Tellier, president and chief executive.
The business, which makes Sea-Doo jetskis, Ski-Doo snowmobiles, outboard motors and all-terrain vehicles, was Bombardier's original business but was sold because it was the easiest division to market.
The buyer is a company half-owned by US investment fund Bain Capital, 35 per cent by the Bombardier family and 15 per cent by Quebec government pension fund, Caisse de depot et placement du Quebec.
The sale, close to the price expected, is the last significant step in a recapitalisation announced in April to stabilise Bombardier and focus the business on its aircraft and train manufacturing divisions.
Combined with second-quarter results that met expectations, the sale pleased investors.
Mr Bob Fay of Canaccord Capital in Toronto said he expected Bombardier to enter a "fairly quiet" period and warned that aircraft sales was a low-margin, highly competitive business.
For the three months ended July 31st, Bombardier made C$93.2 million profit, up from C$68 million last year. Revenues were flat at C$5.27 billion.
The aerospace division turned from an operating loss to a small profit, while the rail division reported flat operating profit.
