Published on October 27th, 2020 | by Alan Dwyer0
Bombardier Confirm Sale of Belfast Facilities
Bombardier have announced that they will close the sale of their Belfast facilities to Spirit AeroSystems on 30th October, as all closing conditions have been met. Under the amended agreement, Spirit will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, Casablanca, Morocco and its aerostructures maintenance, repair and overhaul (MRO) facility in Dallas, for cash consideration of $275 million, Spirit’s assumption of liabilities, including government refundable advances and pension obligations, valued at $824 million, as well as certain adjustments to the parties’ trading agreements favourable to Bombardier.
Bombardier still employ around 3,000 people at its facilities in Belfast. The company posted pre-tax losses of GBP£23m in its latest accounts. Speaking as the deal was finalised, Éric Martel, President and Chief Executive Officer, Bombardier said “We are very excited about our future as a more focused Company. The proceeds from this transaction and from the pending sale of Bombardier Transportation strengthen our liquidity and position us to begin reshaping our capital structure and address our balance sheet challenges so that we can achieve the full potential of our incredibly talented employees and our industry leading business jet portfolio.”
Bombardier is based in Montreal, Canada and have ver 60,000 employees across 25 countries. The company posted revenues of $15.8 billion in the last financial year.
Also speaking on the confirmation of the deal, Spirit AeroSystems President and Chief Executive Officer Tom Gentile said “The transaction secures Spirit’s position as the world’s leader in composite structures for aircraft and as one of the leaders in integrated wing technologies. As with the rest of the aerostructures industry, performance will be adversely impacted due to COVID-19 for the coming years, but we worked closely with Bombardier on a mutually agreeable price reduction that mitigates this impact. Going forward, we look forward to becoming one of Bombardier’s largest suppliers.”
Spirit AeroSystems designs and builds structures for both commercial and defence customers. With headquarters in Wichita, Kansas, Spirit operates numerous sites in the U.S., U.K., France and Malaysia.