The big boss of Savaria sells for about 25 million dollars of shares of the Laval company specializing in accessibility for people with reduced mobility.
Marcel Bourassa has just informed the regulatory authorities of his intention to sell up to 1.7 million shares, the equivalent of 2.64% of the outstanding shares of the company.
The president and CEO of Savaria will nevertheless remain the company’s largest shareholder, but his 23.1% stake will drop to 20.5% after the announced transaction.
Marcel Bourassa explains that he wishes to sell shares for “personal reasons, for the purposes of family estate planning and to support philanthropic works”.
In 2014, he notably created the Bourassa Savaria Foundation, a registered charity that helps Canadians with reduced mobility.
The Common Shares are expected to be sold through the facilities of the Toronto Stock Exchange, but may also be sold in an over-the-counter transaction.
“This transaction in no way affects my investment thesis and I continue to view an investment in Savaria favorably,” said analyst Justin Keywood of Stifel/GMP in a note sent to clients on Tuesday.
This expert takes the opportunity to reiterate that the company is well positioned to achieve its goal of $1 billion in revenue and $200 million in operating profit (20% margin) in 2025.
The eight analysts who officially follow Savaria all recommend buying the stock.
Since Marcel Bourassa holds part of his Savaria shares through several holding companies, the sale of shares will also financially benefit his brother Jean-Marie Bourassa. The latter has been Chief Financial Officer of Savaria for 20 years.
Marcel Bourassa bought Savaria in 1989 when the company was a small Quebec elevator manufacturer founded 10 years earlier.
The company grew with acquisitions and the addition of new products, and went public in 2002.
Savaria’s stock fell 7% to $14 late Tuesday afternoon on the Toronto Stock Exchange. The title has lost about a quarter of its value since the beginning of the year. The stock had risen to more than $20 in September last year. At the current price, Savaria’s market value is close to the billion dollar mark.
Savaria builds vertical and inclined platform lifts, medical equipment, and residential and commercial elevators, among other things. The company also converts and adapts vehicles.
Savaria employs approximately 2,250 people at its facilities in Canada, the United States, Mexico, Europe and China.