Bombardier Inc. is effectively out of the commercial aircraft industry thanks to a definitive agreement to sell its aerostructures business to Spirit AeroSystems Holding Inc. The manufacturer’s new business model is centered on railroad and business aircraft manufacturing.
“This transaction represents another strategic milestone in the reshaping of our portfolio to focus on our strong business aircraft and rail franchises,” stated president and CEO Alain Bellemare.
Earlier this 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.
Spirit AeroSystems will acquire Bombardier’s aerostructures manufacturing plants aftermarket services operations in Belfast, Northern Ireland and Casablanca, Morocco; along with an aerostructures maintenance, repair and overhaul (MRO) center in Dallas, for $500 million in cash and assumption of liabilities totaling $700 million.
Montreal-based Bombardier said the sale strengthens its liquidity as it “moves toward the deleveraging phase of the turnaround.” The transaction is expected to close by mid 2020, but it remains subject to regulatory approvals and customary closing conditions.
Spirit AeroSystems, Wichita, Kan., is a manufacturer of aerostructures for aircraft OEMs, including Boeing and Airbus. The Belfast plant produces wing structures for the Airbus A220 series.
After the sale, Spirit AeroSystems will continue to produce structural aircraft components and spare parts for Bombardier Aviation’s Learjet, Challenger and Global business aircraft programs.