With this transaction, Spirit will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, UK; Casablanca, Morocco; and its aerostructures MRO facility in Dallas, US.
Selling the Belfast facility has been part of a plan to combine Bombardier‘s corporate and regional jet units into a single aviation unit and shed more non-core assets, including its Belfast and Morocco aerostructures businesses.
The deal will see Spirit pay $500 million in cash, take on $300 billion in pension liabilities and approximately $290 million of government grant repayment obligations.
“The Bombardier operations bring world-class engineering expertise to Spirit and add to a strong track record of innovation, especially in advanced composites,” said Spirit AeroSystems president and CEO Tom Gentile. “Belfast has developed an impressive position in business jet fuselage production, in addition to the world-acclaimed fully integrated A220 composite wing. This acquisition is in line with our growth strategy of increasing Airbus content, developing low-cost country footprint, and growing our aftermarket business.”
Gentile added that the Spirit team is excited about the opportunity to expand its operations into Northern Ireland and Morocco. The addition of the entire work package for the A220 wing and its technology are considered _Deccritical for the future of next-generation aircraft.
The backlog of work for the three sites, which employ 4,000 people, includes long-term contracts on the Airbus A220 and A320neo, along with Bombardier business and regional jets.
The aerostructures business delivers composite and metallic wing components, nacelles, fuselages and tail assemblies, along with high-value mechanical assemblies made out of aluminum, titanium and steel.
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.
“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 CEO of Bombardier. “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.”
ADS chief executive Paul Everitt commented: “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.”
