Bombardier sells aerostructures business to Spirit AeroSystems
Sale of aerostructure and MRO facilities will help Bombardier focus activities on rail and business aviation
Bombardier has announced the sale of its aerostructures business to Spirit AeroSystems Holding, Inc. (Spirit).
Spirit will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, Casablanca, Morocco; and its aerostructures maintenance, repair and overhaul (MRO) facility in Dallas, US for a cash consideration of $500 million along with taking on liabilities including government refundable advances and pension obligations valued in excess of $700 million.
Following the transaction, Spirit will continue to supply structural aircraft components and spare parts to support the production and in-service fleet of Bombardier Aviation’s Learjet, Challenger and Global families of aircraft. The sale agreement supports Bombardier’s strategic decision to closely focus on its two strong growth pillars - trains and business aircraft with 2019 revenues for these activities are expected to be approximately $1 billion.
Agreement streamlines aerostructures footprint
The sale agreement follows the formation of Bombardier Aviation earlier this year and streamlines Bombardier’s aerostructures footprint to focus on core capabilities in Montreal, Mexico and Global 7500 wing operations in Texas. The transaction will also strengthens Bombardier’s liquidity. It is expected to be completed in early 2020, subject to regulatory approval.
Alain Bellemare, President and Chief Executive Officer, Bombardier Inc said: “This transaction represents another strategic milestone in the reshaping of our portfolio to focus on our strong business aircraft and rail franchises. We are confident that Spirit’s acquisition of these aerostructures assets is the best outcome for customers, employees and shareholders, and we are committed to ensuring a smooth and orderly transition.”