Bombardier announced today it has wrapped up the sale of its Bombardier Transportation rail division to French train manufacturer Alstom. The move sets the stage for Bombardier to now focus its operations entirely on manufacturing and supporting it business jets and related services. The companies signed a definitive sale and purchase agreement in September concerning terms of the deal, which Alstom shareholders approved shortly after. Bombardier expects net proceeds to total $3.6 billion and also include $600 million in Alstom shares.
A New Chapter
Bombardier notes sale proceeds were lower than previous estimates due in part to the transportation division’s “lower than expected cash generation” in Q4 2020. That was related to unfavorable market conditions and disagreements with Alstom concerning certain adjustments, which Bombardier says it plans to challenge. Bombardier will use sale proceeds to pay down debt. For Alstom, the transaction is expected to make it the world’s second-leading train maker behind the Chinese state-owned CRRC. For Bombardier, the sale marks a new beginning toward focusing all efforts on its business aviation products.
“With this transaction now complete, Bombardier begins an exciting new chapter focused exclusively on designing, building, and servicing the world’s best business jets,” says Bombardier President and CEO Éric Martel. “With an unmatched product portfolio, a world-class customer services network, and incredibly talented employees, we have a strong foundation to build upon as we use the proceeds from the transaction to begin addressing our balance sheet challenges through debt paydown.”
Find Your Bombardier Aircraft
In addition to the Learjet 75 Liberty, Bombardier’s business jet lineup includes Challenger 350 and 650 models and Global 5000, 5500, 6000, 6500, 7500, and 8000 jets. Controller.com offers a big selection of Bombardier business jets for sale every day, including Challenger and Global models, as well as Learjet aircraft.
Posted On: 2/3/2021 12:13:03 PM