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Bombardier, Spirit reach new aerostructures deal


October 26, 2020
Wings Staff
Bombardier’s aerostructures facility in Belfast, Ireland, played a critical role in wing manufacturing for the CSeries commercial aircraft, now controlled by Airbus as the A220 family. (Photo: Bombardier)

Bombardier today announced it has reached amended definitive agreement to sell its aerostructures business to Spirit AeroSystems Holding Inc. of Wichita, Kansas. The initial purchase agreement between the two companies was announced in October 2019 for a cash consideration of US$500 million, plus the assumption of liabilities with a total carrying value in excess of US$700 million.

The amended agreement is for a cash consideration of US$275 million, plus Spirit’s assumption of liabilities valued at $824 million.

As under the initial agreement, Spirit will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, U.K.; Casablanca, Morocco; and its aerostructures maintenance, repair and overhaul (MRO) facility in Dallas, Texas. The transaction is set to close on October 30, 2020, as all closing conditions have been met.

“Today’s announcement marks another milestone towards achieving our strategic goal of repositioning Bombardier as a pure-play business jet company,” said Éric Martel, President and Chief Executive Officer, Bombardier Inc.

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Martel explains the proceeds from the Spirit transaction and from the pending sale of Bombardier Transportation will strengthen the Montreal company’s liquidity position and allow Bombardier to begin reshaping its capital structure.