Spirit AeroSystems has entered into an agreement to acquire select assets of Bombardier aerostructures and aftermarket services businesses in Belfast, Northern Ireland (known as Short Brothers); Casablanca, Morocco; and Dallas, United States, for $500 million. In addition, Spirit AeroSystems will assume approximately $300 million in net 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,” says Tom Gentile, Spirit AeroSystems president and CEO. “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 critical for the future of next-generation aircraft.
The acquired Bombardier operations employ more than 4,000 people at three sites comprising approximately 3.4 million square feet. The backlog of work includes long-term contracts on the Airbus A220 and A320neo, along with Bombardier business and regional jets.
The expected revenues of the acquired Bombardier operations will be approximately $1 billion in 2019. The transaction, which is expected to close in the first half of 2020, is subject to regulatory approvals and customary closing conditions.