Spirit AeroSystems (Spirit), the American parts maker, has revised the deal under which it will purchase the aerostructures unit from Bombardier Inc. The cash component of the deal has been reduced by 45% to US$275 million. While Spirit has confirmed its liabilities remain unchanged, the valuation of the Bombardier enterprise has been reduced from US$1.09 billion to US$865 million.
Bombardier is looking to offload various elements of the business to streamline the company solely to a business jet manufacturer and reduce current borrowing levels of US$9.3 billion.
This is the second deal that has seen an agreed purchase price reduced prior to closure after French train maker Alstom reduced its offer to acquire Bombardier’s rail business by US$350 million in September. The revised agreement still includes Bombardier’s Belfast operation which manufactures wings for the Airbus A220 jet. After the announcement was made, Spirit AeroSystems shares dropped 7%, while Bombardier stock rose 2.3% in midday trading.Email Post to a Friend