Marcott family to acquire BRP’s Manitou pontoon business

VALCOURT, Quebec - BRP Inc. (TSX:DOO) (NASDAQ:DOOO), a powersports vehicle manufacturer with a market capitalization of $3.75 billion and annual revenue of $5.57 billion, announced Tuesday it has reached a definitive agreement to sell its Manitou pontoon boat assets to members of the Marcott family, owners of Bentley Pontoons. According to InvestingPro analysis, BRP currently trades below its Fair Value, suggesting potential upside opportunity.

The transaction, expected to close during BRP’s third quarter of fiscal 2026, is part of the company’s strategy to divest its Marine businesses and focus on its core Powersports activities. InvestingPro data shows the company maintains a FAIR financial health score of 2.24, with net income expected to grow this year - one of several key insights available in the comprehensive Pro Research Report covering this stock.

The Marcott family will acquire the Manitou operations in Lansing, Michigan, and plans to continue manufacturing at the existing facility.

"We are committed to ensuring the continuity of the Manitou brand and we intend to further its reputation for performance, quality and service within the industry," said Dennis Marcott in the company’s press release.

This deal follows BRP’s completed sale of Alumacraft during its second quarter of fiscal 2026 and an agreement to sell its Telwater business, which remains subject to closing conditions.

"Today marks another key step in our process to sell our Marine businesses," said José Boisjoli, President and CEO of BRP. "I am proud of the strong foundation we have built for Manitou."

The financial terms of the transaction were not disclosed in the announcement.

BRP, headquartered in Quebec, reported annual sales of CA$7.8 billion as of January 31, 2025, with operations in over 130 countries. The company has maintained dividend payments for 9 consecutive years, with a current dividend yield of 1.23%. For deeper insights into BRP’s financial metrics and growth potential, investors can access detailed analysis through InvestingPro, which offers exclusive access to over 30 key financial metrics and expert recommendations.

In other recent news, BRP Inc. reported its earnings for the first quarter of fiscal year 2025, surpassing expectations with an earnings per share of $0.47 against a forecast of $0.4072, and revenue of $1.8 billion, exceeding the predicted $1.75 billion. Despite a year-over-year revenue decline of 8%, the company showed strong performance in snowmobile sales, with retail sales up over 80%. Analysts from TD Securities, Stifel Canada, and Desjardins have all upgraded BRP’s stock rating to Buy, citing the company’s easing inventory headwinds and potential for revenue growth and margin expansion. TD Securities raised its price target to C$70, Stifel increased it to Cdn$68, and Desjardins set it at Cdn$78. Stifel analysts, in particular, expressed optimism for BRP’s sales growth in the second quarter of fiscal year 2026, while Desjardins highlighted the company’s robust free cash flow and effective management. These developments come as BRP Inc. continues to navigate challenges such as tariff impacts and economic uncertainties, with plans to complete inventory reduction by the end of the second quarter and expectations for stronger performance in the latter half of the year.

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