Bombardier has sold its aerospace wiring business in Mexico to French aerospace company Latecoere for $45 million, closing a deal that had been in the works for more than one year.
Latecoere said on 16 February that it finally completed the acquisition of what had been Bombardier’s Electrical Wiring and Interconnection Systems (EWIS) business.
Based in Querétaro, Mexico, EWIS makes electrical harnesses and sub-assemblies and generates annual revenue of about $60 million, Latecoere says.
In December 2019, Bombardier disclosed its intention to sell EWIS to Latecoere. At that time, Bombardier intended to divest the business for $50 million and to close the deal in the first half of 2020.
Bombardier will continue to receive components for its Global and Challenger business jet’s from EWIS under a long-term supply agreement with Latecoere, the French company says.
The acquisition will enable Latecoere to “expand its customer portfolio” by supplying other aerospace companies such as Airbus Canada, CRJ maker MHIRJ and Canadian aerostructures company Avcorp.
Bombardier’s global headcount declines by about 500 employees with the divestiture. The Canadian company will still retain an aerostructures manufacturing footprint in Mexico, making structures including the Global 7500’s rear fuselage.
The deal marks another divestiture for Bombardier, which has sold various assets in recent years in a bid to focus on designing and manufacturing business jets.