Company now focused solely on business jets and rail transportation.
Bombardier’s restructuring program continues to move along with its announcement that it will sell its aerostructures business to Spirit AeroSystems Holding Inc in a $1 billion cash and debt transaction.
As part of the deal, Spirit will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, U.K., and Casablanca, Morocco, and its aerostructures maintenance, repair and overhaul (MRO) facility in Dallas, Texas, USA, for a cash consideration of $500 million and the assumption of liabilities with a total carrying value in excess of $700 million, including government refundable advances and pension obligations. Year 2019 revenues for these activities are expected to be approximately $1.0 billion.
Once these actions have been completed, 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 move is likely a crowning achievement for the company’s restructuring effort, which began almost five years ago. This latest divestiture marks its fourth such move and has radically narrowed the company’s focus to trains and business aircraft. Previously the company sold its CSeries program to Airbus, its Q400 turboprop and De Havilland trademark to Longview Aircraft, and its CRJ program to Mitsubishi Heavy Industries. (See related article: A New Bombardier Aviation Is Formed as It Exits Commercial Aerospace.)
Spirit AeroSystems, meanwhile, expands its aerostructure manufacturing operations with more than 3.4 million square feet of factory space in locations around the world. Most critically, the company gains a large backlog of work on programs such as the Airbus A220 and A320neo, as well as Bombardier business and regional aircraft. Further sweetening the buy is the addition of a lucrative aftermarket to support these components. The company’s workforce will swell by around 4,000 to almost 19,000 with the addition of the three sites.
The transaction is expected to close in the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.