Bombardier Inc. could see up to $150-million shaved off the $1.23-billion price being paid for its recreational products division.
The anticipated adjustments are related to a gap to fill in the amount of accounts receivable flowing to the buyer as well as an expected shortfall in the recreational products' pension fund for employees, according to the Montreal-based company.
Paul Tellier, the company's president and chief executive officer, acknowledged the possible adjustment in a conference call following the announcement of the blockbuster deal on 27 August, but the detail was not widely noted.
The recreational products unit is being sold to a group made up of US private equity giant Bain Capital, members of the Bombardier founding family and the Caisse de dйpфt et placement du Quйbec, the huge provincial pension fund.
