Bombardier Offers Plants to Spirit AeroSystems For Over $1 Billion
On Thursday, Canada’s Bombardier is in progressive discussions to sell three facilities. The sale includes the trade of its Belfast wing-making plant to Spirit AeroSystems. According to two spokespersons, its cost is for more than $1 billion in cash and assumed liabilities.
Moreover, the two companies are nearing a contract, which could be declared the same day, according to sources. But they warned that talks could still fall apart.
Both companies are arranging to report their third-quarter earnings today.
Bombardier plans to sell two aerostructure facilities. These are two Belfast plants and another in Morocco.
The plant is along with a minor repair plant in Dallas that comes as the Canadian company that sheds its commercial aviation business. It is to concentrate more on its higher-margin commercial jets and rail divisions.
Previously, analysts have indicated that a deal would be strategic for Spirit, an aerospace components maker. This is because it diversifies its consumer base away from Boeing Co.
In addition, Spirit is Boeing’s chief supplier, but the company has plans to cultivate its business with Europe’s Airbus.
Process Of Evolving To Obtain The Facilities
In a news report recently, the Wichita-based Spirit was developing as the front-runner to obtain the facilities.
On the other side, Bombardier declined to reply to a statement.
Moreover, Spirit did not also instantly respond to a request for comment outside of business hours.
Meanwhile, sources who have given the information declined to be acknowledged. This is because the discussions are confidential.
The Belfast plant is considered politically sensitive. This is because it is the principal high-tech manufacturer in Northern Ireland, with a workforce of around 3,500.
In addition, the plant also forms wings for Airbus’s A220 jet.
The A220 program is mounting with Airbus. As of September 30, it is recording an excess of 435 of the 110 to 130 seat jets.
Lastly, assumptions of liabilities that include the pension in obligations are on the deal. The said deal is still on process.
