Bombardier has announced about its definitive agreement on selling Aerostructures business to Spirit AeroSystems Holding Inc. (Spirit), in order to focus on trains and business aircraft.
As per this agreement, Spirit will acquire the aerostructure activities and aftermarket services operations of Bombardier in Belfast, UK, Casablanca, Morocco, along with maintenance, repair, and overhaul (MRO) facility in Dallas, U.S. for a cash consideration of $500 million and other liabilities. Spirit will be supplying structural aircraft components and spare parts for the production and in-service fleet of Bombardier Aviation’s Learjet, Challenger and Global families of aircraft.
Earlier this year, Bombardier Aviation was formed and the transaction streamlines aerostructures footprint of Bombardier to focus on core capabilities in Montreal, Mexico and its Global 7500 wing operations in Texas. The transaction also further strengthens liquidity of Bombardier as it moves towards the deleveraging phase of the turnaround. The transaction is expected to close in the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.
“This transaction represents another strategic milestone in the reshaping of our portfolio to focus on our strong business aircraft and rail franchises,” said Alain Bellemare, President and chief Executive Officer, Bombardier Inc. “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.”