Spirit AeroSystems Holdings, Inc. (NYSE: SPR) has announced it has agreed to acquire select assets of Bombardier aerostructures and aftermarket services businesses in Belfast, Northern Ireland (known as Short Brothers); Casablanca, Morocco; and Dallas, United States, the company said.
The assets will be acquired for cash consideration of USD 500 million. In addition, Spirit AeroSystems will assume approximately USD 300 million in net pension liabilities, and approximately USD 290 million of government grant repayment obligations, for a total enterprise valuation of USD 1,090 million, which equals 10 times the 2019 estimated Adjusted EBITDA of the acquired business.
At closing, Spirit AeroSystems will pay USD 500 million to Bombardier and will make a cash contribution of approximately USD 130 million towards the pension liability, for total cash at closing of USD 630 million.
In aerostructures and fabrication, the acquired business is a global player, delivering composite and metallic wing components, nacelles, fuselages and tail assemblies, along with high-value mechanical assemblies made out of aluminum, titanium and steel. The acquired business also brings a world-class aftermarket business which more than doubles Spirit´s geographic reach globally.
The expected revenues of the acquired Bombardier operations will be approximately USD 1 billion in 2019.
Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC served as financial advisors to Spirit.
Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers. With headquarters in Wichita, Kansas, Spirit operates sites in the US, UK, France and Malaysia.