in Aerospace

Bombardier to sell aerostructures business to Spirit

Posted 31 October 2019 · Add Comment

Bombardier today announced a definitive agreement to sell its aerostructures business to Spirit AeroSystems Holding, Inc. (Spirit) - which includes its facilities in Northern Ireland - supporting Bombardierís strategic decision to focus on its two strong growth pillars, trains and business aircraft.



Above: Bombardier's facilities in Northern Ireland at night.
Courtesy Bombardier


With this transaction, Spirit will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, UK; Casablanca, Morocco; and its aerostructures maintenance, repair and overhaul (MRO) facility in Dallas, US for a cash consideration of $500 million and the assumption of liabilities with a total carrying value in excess of $700(2)  million, including government refundable advances and pension obligations.

Following the transaction, 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.

2019 revenues for these activities are expected to be approximately $1.0 billion(3) , while generating adjusted EBITDA margin of approximately 12%. On this basis, the transaction implies an enterprise value to EBITDA multiple of approximately 10x.

The transaction follows the formation of Bombardier Aviation earlier this year and streamlines Bombardier’s aerostructures footprint to focus on core capabilities in Montreal, Mexico and its Global 7500 wing operations in Texas. The transaction also further strengthens Bombardier’s liquidity as it moves toward the deleveraging phase of the turnaround. The transaction is expected to close in the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.

“This transaction represents another strategic milestone in the reshaping of our portfolio to focus on our strong business aircraft and rail franchises,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc.  “We are confident that Spirit’s acquisition of these aerostructures assets is the best outcome for customers, employees and shareholders, and we are committed to ensuring a smooth and orderly transition.”

In a statement, ADS Chief Executive Paul Everitt said: “The sale of Bombardier’s Northern Ireland facility announced today is welcome news for the highly skilled workforce in Belfast, the successful aerospace sector in Northern Ireland and the whole UK aerospace industry.

“Spirit AeroSystems is one of the largest aerostructures business in the world, and this deal sees them significantly expand their operations in the UK, while also opening up new opportunities for the Belfast facility to grow its business with the US and elsewhere.

“With the future of the operations assured, the exceptional workforce at the Belfast facility will now be able to continue to use their world-class expertise and skills as an integral part of the aerospace industry. We look forward to working closely with Spirit as they continue to grow their UK footprint.”


 

* required field

Post a comment

Other Stories
Advertisement
Latest News

ADIPEC 2019: BMT delivers mooring line monitoring system for Helang FPSO

BMT teams with LMC on turret moored FPSO for field development

WeaponLogic Unveils for the first time at Milipol

WeaponLogic (Secubit) & #8210; a leader in advanced weapon readiness and maintenance solutions for global military and paramilitary forces as well as law enforcement and HLS agencies ‒ unveils for the first time at

DASA awards £2m contracts to counter hostile drone threats

The Defence and Security Accelerator (DASA) has awarded nearly £2 million to develop new capabilities to detect, disrupt and defeat the hostile and malicious use of drones.

UK Space Agency confirms £7.35m funding for small sat launch from Cornwall

It has been confirmed this week that the UK Space Agency will award £7.35 million to Virgin Orbit UK Limited, the UK branch of US launch operator Virgin Orbit, to enable horizontal launch of small satellites at Cornwall Airport

Rolls-Royce appoints George Culmer as a Non-Executive Director

Rolls-Royce today announced the appointment of George Culmer as a Non-Executive Director. He will join the Board with effect from 2nd January 2020 and will become a member of the Nominations and Governance Committee, the Audit

Tech Nation to support growth of UK Lawtech

British technology firm Tech Nation has been awarded £2 million of government funding to help support the digital transformation of the UKís legal sector.

See us at
SMI ActiveP BT1206121119DSEI JP BT1605201119SMI FAV BT1006141119S&P BT241019040320VIDSE BT1605060320FIL20BT010819260720