Boeing (NYSE:BA) has partnered with Brazil-based Embraer (NYSE:ERJ) to form a joint venture consisting of Embraer´s aircraft and services business and Boeing´s commercial development, production, marketing and lifecycle services operations, the company said.
Boeing will hold an 80 percent ownership stake in the joint venture and Embraer will own the remaining 20 percent stake. The transaction values 100 percent of Embraer´s commercial aircraft operations at $4.75 billion, and contemplates a value of $3.8 billion for Boeing´s 80 percent ownership stake in the venture.
The transaction positions both companies to accelerate growth in global aerospace markets.
Boeing is the world´s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.
Embraer S.A. is a Brazilian aerospace conglomerate that produces commercial, military, executive and agricultural aircraft and provides aeronautical services.