BRP Inc. (DOOO) stock is soaring 5.03% in intraday trading on Tuesday, as investors react positively to the company's announcement of selling its Telwater business to Yamaha Motor Australia. This strategic move aligns with BRP's decision to focus on its core Powersports activities and potentially enhance its long-term success.
The definitive agreement, announced late Monday, involves the sale of 100% of the outstanding shares of Telwater Pty, Ltd. to Yamaha Motor Australia Pty Ltd., a subsidiary of Yamaha Motor Co., Ltd. Telwater, which includes renowned brands such as Quintrex, Stacer, and Savage, marks BRP's first transaction in its process of divesting Marine businesses.
José Boisjoli, President and CEO of BRP, stated, "We are pleased with today's announcement, our first transaction in the process for the sale of our Marine businesses. This transaction follows BRP's decision to sell its Marine businesses to channel its efforts and investments towards its core Powersports activities, thereby enhancing its position for long-term success." The deal is expected to close in the second quarter of BRP's Fiscal 2026, subject to customary closing conditions and regulatory approval.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.