Bombardier announced this week it has reached amended definitive agreement to sell its aerostructures business in Casablanca, Belfast, and Dallas to Spirit AeroSystems Holding Inc. of Wichita, Kansas.
The initial purchase agreement between the two companies was announced in October 2019 for a cash consideration of $500 million, plus the assumption of liabilities with a total carrying value in excess of $700 million.
The amended agreement is for a cash consideration of $275 million, plus Spirit’s assumption of liabilities valued at $824 million.
As under the initial agreement, Spirit will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, U.K. and Casablanca, Morocco.
It will also acquire Bombardier’s aerostructures maintenance, repair and overhaul (MRO) facility in Dallas, Texas.
The transaction is set to close on October 30, 2020, as all closing conditions have been met.
“Today’s announcement marks another milestone towards achieving our strategic goal of repositioning Bombardier as a pure-play business jet company,” said Eric Martel, President and Chief Executive Officer, Bombardier Inc.
Martel explains the proceeds from the Spirit transaction and from the pending sale of Bombardier Transportation will strengthen the Montreal company’s liquidity position and allow Bombardier to begin reshaping its capital structure.
Last year, the Canadian aerospace giant announced plans to redirect its focus on private jets and trains.
The company also announced the decision to create a new division of the company, Bombardier Aviation.
Spirit AeroSystems Holdings, with taking over the facility in Casablanca, will join other aerospace giants in the field operating in Morocco.
International aeronautics companies operating in Morocco include Boeing and Safran. Spirit is one of the largest suppliers for Boeing aircraft.
Spirit has facilities in the US cities of Tulsa, McAlester, and Kinston, as well as in Malaysia and France.
The company’s key products include fuselages, pylons, nacelles, and wing components.
The US company also provides maintenance, repair, and overhaul services.