Published on November 5th, 2019 | by Mark Dwyer0
Bombardier Sells Belfast Plant to Spirit AeroSystems
Bombardier announced last week an agreement to sell its aerostructures business to Spirit AeroSystems Holding, Inc. supporting Bombardier’s strategic decision to focus on its two strong growth pillars, trains and business aircraft. The sale includes the Belfast plant, formerly Short Brothers, which employs around 3,600 workers.
The transaction also includes a plant in Casablanca, Morocco and its aerostructures maintenance, repair and overhaul (MRO) facility in Dallas, U.S. for a cash consideration of €451 million and the assumption of liabilities with a total carrying value in excess of €632 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.
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 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.”
Bombardier came close to bankruptcy in 2015 following delays and overruns in the CSeries programme. As part of the streamlining of the business, that project was sold to Airbus and has been rebranded the Airbus A220. Bombardier employs over 68,000 worldwide and is headquartered in Montreal.