Latécoère: Enters into an Agreement to Acquire Bombardier’s Electrical Wiring Interconnection System Business in Querétaro
December 31 2019 - 12:00AM
Business Wire
- Latécoère to acquire EWIS activities and related assets as well
as a skilled workforce specializing in harnessing and electrical
sub-assemblies in Querétaro
- Agreement promotes long-term relationship with Latécoère and
supports the optimization of Bombardier Aviation
- Bombardier continues to produce major structures at its
high-tech main campus in Querétaro, including the aft fuselage for
the Global family of jets
Regulatory News:
Latécoère (Paris:LAT) and Bombardier announced that the
companies have entered into a definitive agreement, whereby
Latécoère will acquire Bombardier’s electrical wiring
interconnection system (EWIS) assets in Querétaro, Mexico. The two
companies also concluded a long-term supply agreement that will see
Latécoère supply Bombardier with electrical wiring interconnection
systems.
The transaction is subject to customary conditions and approvals
and is expected to close in the first half of 2020.
Approximately 700 skilled employees are dedicated to the
manufacture of EWIS at Bombardier’s facility in Querétaro. Under
the long-term supply agreement, Latécoère will continue to supply
the EWIS for all Bombardier Aviation platforms, including Global,
Challenger and Learjet aircraft from the current location to
support Bombardier’s requirements. The annual turnover of the
business is anticipated to be around USD 80 million.
“This acquisition reflects our willingness to emerge as a
leading player in the global consolidation movement in the
aeronautics sector,” said Yannick Assouad, CEO of Latécoère.
“We keep deploying our manufacturing footprint on an international
scale with a strong desire to strengthen our presence in the areas
closest to our customers,” she added.
“This agreement exemplifies Bombardier’s focus on streamlining
its activities to foster a strong and efficient aviation
franchise,” said Paul Sislian, Chief Operating Officer,
Bombardier Aviation. “With Latécoère’s reputation for
excellence, this new partnership will result in a winning
combination for both our companies.”
Under the terms of the transaction, Latécoère will pay
Bombardier a cash consideration of USD 50 million. The transaction
further supports Bombardier Aviation’s transformation and sharpens
the company’s focus on its core manufacturing capabilities. The
skilled employees who manufacture the main harnesses and electrical
subassemblies in Querétaro will bring years of experience and value
to Latécoère. The sale will not impact the remainder of
Bombardier’s operations at its Querétaro site, which will continue
to produce major structures for Bombardier aircraft, such as the
aft fuselage for the Global family of business aircraft – including
the company’s flagship Global 7500 jet – the most complex aircraft
component manufactured in Mexico.
About Latécoère
Latécoère is a tier 1 partner to major international aircraft
manufacturers (Airbus, Embraer, Dassault, Boeing and Bombardier),
in all segments of the aeronautical market (commercial, regional,
corporate and military aircraft), specializing in two fields:
- Aerostructures (58% of total revenue): fuselage sections and
doors.
- Interconnexion systems (42% of total revenue): onboard wiring,
electrical harnesses and avionics bays.
At 31 December 2018, Latécoère employed 4,958 people in 13
different countries. Latécoère, a French corporation (société
anonyme) with capital of €189,637,036 divided into 94,818,518
shares with a par value of €2 per share, is listed on Euronext
Paris - Compartment B. ISIN codes: FR0000032278 - Reuters: LAEP.PA
- Bloomberg: LAT.FP
About Bombardier
With over 68,000 employees, Bombardier is a global leader in the
transportation industry, creating innovative and game-changing
planes and trains. Our products and services provide world-class
transportation experiences that set new standards in passenger
comfort, energy efficiency, reliability and safety.
Headquartered in Montreal, Canada, Bombardier has production and
engineering sites in 28 countries as well as a broad portfolio of
products and services for the business aviation, commercial
aviation and rail transportation markets. Bombardier shares are
traded on the Toronto Stock Exchange (BBD). In the fiscal year
ended December 31, 2018, Bombardier posted revenues of $16.2
billion US. The company is recognized on the 2019 Global 100 Most
Sustainable Corporations in the World Index. News and information
are available at bombardier.com or follow us on Twitter
@Bombardier.
Notes to Editors Follow @Bombardierjets on Twitter to receive
the latest news and updates from Bombardier Business Aircraft. To
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Feed section.
Bombardier, Challenger, Global, Global 7500, and Learjet are
either unregistered or registered trademarks of Bombardier Inc. or
its subsidiaries.
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version on businesswire.com: https://www.businesswire.com/news/home/20191230005336/en/
Latécoère Michel Abaza / Chief Financial Officer +33 (0)5
61 58 77 00 michel.abaza@latecoere.aero
Bombardier Anna Cristofaro/ Manager, Communications +1
514 855 8678 anna.cristofaro@aero.bombardier.com
FTI Consulting Arnaud de Cheffontaines / Investor
Relations +33 (0)1 47 03 69 48 Mathilde Jean /
Relations Media +33 (0)1 47 03 6954
latecoere@fticonsulting.com
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