Spirit AeroSystems has completed its acquisition of Bombardier’s aerostructures and aftermarket services businesses.
The deal was initially struck in October last year, but completion had been put at risk by the collapse in demand for air travel resulting from the global pandemic.
Details of a revised purchase agreement, under which Spirit almost halved the cash sum it is paying for Bombardier’s aerostructures business, were disclosed on 26 October, however, enabling the deal to be completed.
Spirit AeroSystems president and chief executive Tom Gentile says: “We are excited to finalise this strategic and transformational acquisition. 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 around 3,300 people at three sites across Belfast, Casablanca and Dallas.
Under the initial agreement, Spirit was to acquire the aerostructures operations for $500 million in cash and assume $300 million in pension liabilities and $290 million in government loans, for a total of $1.1 billion. Under the revised deal, the cash sum was reduced to $275 million, valuing the company at $865 million. Spirit will make a contribution of £100 million ($130 million) to the Shorts pension scheme a year after completing the deal.