Bombardier Inc. and Spirit AeroSystems amended their agreement on the sale of Bombardier's aerostructures business for $275 million in cash and various liabilities valued at $824 million. The deal first announced 12 months ago was originally agreed at $500 million in cash plus liabilities totaling $700 million.
The sale will be final on October 30, marking Bombardier’s exit from the commercial aircraft sector. The Montréal-based business aims to be a "pure-play business jet company."
Spirit AeroSystems, Wichita, Kan., manufactures airframes and other aerostructures for OEMs, including Boeing and Airbus. It will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, Northern Ireland; Casablanca, Morocco; and its aerostructures maintenance, repair and overhaul (MRO) plant in Dallas, Tex. The Belfast plant is notable as the manufacturer of wing structures for the Airbus A220 series.
Last year Bombardier sold its Canadair Regional Jet program to rival Mitsubishi Heavy Industries for $550 million, plus liabilities estimated at $200 million.
In 2018, Bombardier sold a majority stake in its C Series narrow-body commercial aircraft program to Airbus, which now controls the renamed Airbus A220 series through a joint venture. A subsequent sale saw Bombardier exit that venture.
Bombardier designs and builds business and private aircraft under the Learjet, Challenger, and Global brands.
“We are very excited about our future as a more focused company," stated Éric Martel, Bombardier president and CEO. He added that the proceeds from this sale transaction and the pending sale of Bombardier Transportation will strengthen the business's liquidity and allow it to begin reshaping its capital structure.”