Spirit Closes on Sale of Bombardier Assets

 - October 30, 2020, 9:30 AM

Spirit AeroSystems has closed on its $865 million acquisition of select Bombardier assets that will give it additional work with Airbus and the Canadian airframer. Under the deal, the Wichita-based aircraft supplier gains Bombardier’s aerostructures and aftermarket businesses in Belfast, Northern Ireland (Short Brothers); Casablanca, Morocco; and Dallas.

Long-term contracts from those sites include work on the A220 (formerly C Series) and Bombardier business jets. Combined, the sites employ 3,300 people and encompass 3.4 million sq ft of covered space.

“The acquired sites bring expertise in engineering, innovation, and advanced composites, and also aligns with our strategic priorities,” said Spirit president and CEO Tom Gentile. “With the addition of these sites, Spirit acquires the entire work package for the A220 wing manufacturing processes and technology, which are critical for the future of next-generation aircraft, and doubles our global world-class aftermarket services business.”

Spirit paid $275 million in cash to Bombardier and assumed debt and other obligations. Those obligations will include a $130 million contribution to the Shorts pension plan on the first anniversary of the closing of the sale.

The closing comes just days after the supplier to commercial aircraft OEMs announced it would proceed with the acquisition, which was in doubt because of deep financial losses from the effects of Covid-19 and grounding of the Boeing 737 Max.