Business aviation company Bombardier has announced it will sell Bombardier Transportation to Alstom for EUR 7.45bn (USD 8.2bn), the company said.
Following adjustments for liabilities, expected net proceeds between USD 4.2 billion and USD 4.5 billion will reshape capital structure.
Bombardier said it made the strategic decision to focus exclusively on business aviation and plans to accelerate its deleveraging through the sale of its rail business.
The transaction will retire la Caisse´s participation in Bombardier Transportation (BT), with la Caisse becoming largest shareholder of Alstom.
Bombardier Aviation is a USD 7.0 billion business, with demonstrated performance and a clear path for growth, margin expansion and solid cash generation. For more than 30 years, Bombardier has designed, built and supported one of the largest installed bases in business jet history, which today stands at more than 4,800 aircraft.
Bombardier has retained Citigroup Global Markets Inc. and UBS Investment Bank as its financial advisors and Norton Rose Fulbright as its lead legal advisor, with Jones Day advising on antitrust and competition matters outside Canada. National Bank Financial and Rockefeller Capital Management are acting as financial advisors to Bombardier´s Board of Directors.