Will Spirit AeroSystems Pursue Its Deal To Acquire Bombardier Aerostructures Business - Revised Price If So?
But a lot has changed...
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July 28, 2020 - by Senior Business Editor Michael Bruno for www.aviationweek.com
How likely is it that Spirit AeroSystems will continue to pursue its deal to acquire Bombardier's aerostructures operations?
It is likely that Spirit AeroSystems will try to acquire Bombardier's aerostructures operations—but for less money.
When it was announced last October, Spirit's decision to buy Bombardier's aerostructures businesses in Northern Ireland and Morocco—as well as a maintenance, repair and overhaul business in Dallas—was hailed as a prudent diversification of Spirit's business model and a natural divestiture by Bombardier as it focuses on business aviation.
The $1 billion deal, which was supposed to close by June, included $500 million in cash at closing and the assumption of as much in UK pension obligations.
At the time, financial analysts hailed it as a "good price" for both sides. But a lot has changed.
In January, Boeing halted production of the 737 MAX, which sideswiped Spirit because the narrowbody program accounts for more than half the Wichita, Kansas, manufacturer's annual revenue.
Then came COVID-19, which has...
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