Latécoère to acquire Bombardier EWIS assets in Mexico
Latécoère based in Toulouse, France, reached a definitive agreement to acquire Bombardier’s electrical wiring interconnection system (EWIS) assets in Querétaro, Mexico, for a cash consideration of US$50 million ($64.8 million in Canadian funds). The transaction is expected to close in the first half of 2020.
The two companies also concluded a long-term supply agreement that will see Latécoère supply Bombardier with electrical wiring interconnection systems for all of its aviation platforms, including Global, Challenger and Learjet aircraft. The annual turnover of the business is anticipated to be around US$80 million. Approximately 700 employees are involved in the manufacturing of EWIS at Bombardier’s facility in Querétaro.
“This acquisition reflects our willingness to emerge as a leading player in the global consolidation movement in the aeronautics sector,” said Yannick Assouad, CEO of Latécoère. “We keep deploying our manufacturing footprint on an international scale with a strong desire to strengthen our presence in the areas closest to our customers.”
Bombardier states the transaction further supports its Aviation division transformation to focus on core manufacturing capabilities. The sale will not impact the remainder of Bombardier’s operations at its Querétaro site, which will continue to produce major structures for Bombardier aircraft, such as the aft fuselage for the Global family of business aircraft – including the company’s flagship Global 7500 jet.
Latécoère is a Tier 1 partner to major international aircraft manufacturers such as Airbus, Embraer, Dassault and Boeing, in addition to Bombardier, operating in the commercial, regional, corporate and military aircraft segments.
With more than 4,900 employees in 13 countries, Latécoère specializes in two fields: Aerostructures (58 per cent of total revenue), including fuselage sections and doors; and Interconnexion systems (42 per cent of total revenue), including onboard wiring, electrical harnesses and avionics bays.