Bombardier Concludes Commercial Aviation Divestment
Bombardier will complete its move away from commercial aircraft production with the sale of its regional jet business to Japan’s Mitsubishi Heavy Industries (MHI).
Under the sale agreement Mitsubishi will buy Bombardier’s CRJ business for USD$550 million in cash and the assumption of USD$200 million of liabilities.
MHI will acquire the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series located in Montréal and Toronto, and service facilities in West Virginia and Arizona. Also included are type certificates.
MHI chief executive Seiji Izumisawa said the transaction “represents one of the most important steps in our strategic journey to build a strong, global aviation capability.
“MHI has a decades-long history in Canada, and I hope this transaction will result in the expansion of our presence in the country, and will represent a significant step in our growth strategy.”
Bombardier’s CEO Alain Bellemare said the agreement “represents the completion of Bombardier’s aerospace transformation.” He said the company’s focus will now be on its rail and business jet franchises.
Bombardier will retain its Québec production facility, with CRJ jet production finishing in the second half of 2020 after the delivery of the current order backlog. It will also continue to supply components and spare parts from Mirabel.
The transaction is expected to close during the first half of 2020 and is subject to regulatory approvals and closing conditions.