Spirit AeroSystems Completes Acquisition of Select Assets of Bombardier Aerostructures and Aftermarket Services Businesses
Spirit AeroSystems has successfully acquired select assets from Bombardier's aerostructures and aftermarket services, including operations in Belfast, Casablanca, and Dallas.
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Rhea-AI Summary
Spirit AeroSystems has successfully acquired select assets from Bombardier's aerostructures and aftermarket services, including operations in Belfast, Casablanca, and Dallas. This strategic acquisition, valued at $865 million, enhances Spirit's capabilities in engineering and advanced composites, specifically for the A220 wing manufacturing processes. The deal involves a $275 million upfront payment and a £100 million contribution to the Shorts pension scheme in the coming year. This acquisition also adds approximately 3,300 employees and strengthens Spirit's global aftermarket services portfolio.
Positive
- Acquisition enhances engineering and innovation capabilities in aerostructures.
- Secures entire work package for A220 wing manufacturing, critical for next-generation aircraft.
- Doubles Spirit's global aftermarket services business.
Negative
- Total enterprise valuation of acquisition is high at $865 million.
- Liabilities acquired include pension obligations, adding financial responsibility.
Details
News Market Reaction – SPR
The recorded move for SPR in the trading session of this news was -1.94%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
WICHITA, Kan., Oct. 30, 2020 /PRNewswire/ -- Spirit AeroSystems Holdings, Inc. (NYSE: SPR) ("Spirit AeroSystems") announced today it has completed, through its wholly-owned subsidiaries Spirit AeroSystems, Inc. ("Spirit") and Spirit AeroSystems Global Holdings Limited ("Spirit UK"), its acquisition of select assets of Bombardier aerostructures and aftermarket services businesses in Belfast, Northern Ireland (known as Short Brothers); Casablanca, Morocco; and Dallas, United States.
"We are excited to finalize this strategic and transformational acquisition," said Spirit AeroSystems President and CEO Tom Gentile. "The acquired sites bring expertise in engineering, innovation and advanced composites, and also aligns with our strategic priorities. 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."
The acquired Bombardier operations employ approximately 3,300 people at three sites comprising approximately 3.4 million square feet. The backlog of work includes long-term contracts on the Airbus A220 and Bombardier business jets, along with world-class aftermarket services at two of the acquired sites.
At closing, Spirit/Spirit UK paid
About Spirit AeroSystems
Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers, focusing on affordable, innovative composite and aluminum manufacturing solutions to support customers around the globe. With headquarters in Wichita, Kansas, Spirit operates sites in the U.S., U.K., Malaysia and Morocco. The company's core products include fuselages, pylons, nacelles and wing components for the world's premier aircraft. More information is available at www.spiritaero.com
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SOURCE Spirit AeroSystems
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