Spirit AeroSystems of the United States announced on October 31 that it has reached a final agreement with Canada ’s Bombardier, which is expected to acquire Bombardier ’s “Short Brothers” in Belfast, Northern Ireland, for a cash price of US $ 500 million. Some aerospace structural assets and after-sales services in Casablanca, Morocco and Dallas, USA.
The Bombardier business involved in this acquisition employs more than 4,000 employees in three locations (approximately 3.4 million square feet). Business content includes long-term contracts for Airbus A220 and A320neo and Bombardier's business and regional aircraft.
In the field of aircraft structure and manufacturing, Bombardier provides composite materials and metal wing, cabin, fuselage and tail components, as well as high-value mechanical components made of aluminum alloys, titanium alloys and steel. Spirit AeroSystems said that the success of the asset acquisition will bring the company world-class after-sales services, and the company's business volume and its global geographic coverage will double in the future.
In addition, Spirit AeroSystems will assume about $ 300 million in net pension debt and about $ 290 million in government subsidy repayment obligations. The company ’s total valuation is $ 1.09 billion, which is equivalent to 10 times the adjusted EBITDA of the acquired business in 2019. . When the transaction is completed, Spirit AeroSystems will pay Bombardier $ 500 million and will pay approximately $ 130 million in cash for pension liabilities, and the total cash at the end of the transaction is $ 630 million.
Tom Gentile, President and CEO of Spirit AeroSystems, said: “Bombardier ’s operations have provided us with world-class engineering expertise, especially in advanced composite materials. We have strong innovation capabilities. The Belfast plant has a fully integrated A220 In addition to composite wings, it has also achieved world-renowned achievements in the production of business jet fuselages. This acquisition is in line with our growth strategy for increasing Airbus orders and developing aftermarket businesses. The team has opportunities to expand its business Northern Ireland and Morocco are excited. "
The expected revenue of the acquired Bombardier business will be approximately USD 1 billion in 2019. The transaction is expected to be completed in the first half of 2020, subject to regulatory approvals and customary closing conditions. Spirit AeroSystems is expected to achieve a synergy of approximately US $ 60 million through this acquisition, which will result in an enterprise value multiple (EV / EBITDA) of 6.5 times after the acquisition.
Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC will serve as financial advisers to Spirit AeroSystems.