Bombardier sold its Aerostructures business to Spirit in a $1.2 billion deal. The transaction calls for $500 million in cash and the assumption of $300 million in net pension liabilities, as well as $290 million in repayment obligations for government grants plus some additional pension payments.
The acquisition features 3.4 million square feet and 4,000 employees at three sites. Those sites produce composite and metallic wing components, nacelles, fuselages, tail assemblies and “high value mechanical assemblies” made of titanium, aluminum and steel. This includes the Belfast facility that produces the most advanced wing in the industry used on the A220 as well as wing production for Bombardier’s business jets. The site in Morocco has also been cited for its consistent high quality and favorable economics.
The transaction is expected to close in the first half of 2020, once regulatory approvals are gained. “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.”
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