Bombardier sells aerostructures unit to Spirit Aerosystems

Bombardier sold its aerostructures arm to Spirit AeroSystems Holdings for approximately $1.2bn as it pivots its aerospace arm towards business aviation.

The transaction amount comprises cash proceeds of $500.0m plus the assumption of liabilities in excess of $700.0m.

Management said the decision was part of its strategic plans to focus on the group's two main growth pillars, trains and business aircraft.

The aerostructures unit included aftermarket services operations in Belfast and Casablanca, and aerostructures maintenance activities in Dallas.

In 2019, the business segment was expected to generate sales of roughly $1.0bn with an earnings before interest, taxes, depreciation and amortisation margin of about 12.0%, implying a valuation multiple at the time of sale of approximately 10 times.

"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 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."