Posted on: 25 June 2019 by Alexander Preston
Mitsubishi Heavy Industries (MHI) is to acquire Bombardier’s regional jet programme for US$200 million. The transaction is currently expected to close during the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.
MHI will acquire the maintenance, support, refurbishment, marketing and sales activities for the CRJ Series aircraft.
This acquisition is complementary to MHI’s existing commercial aircraft business, in particular, the development, production, sales and support of the Mitsubishi SpaceJet commercial aircraft family.
Seiji Izumisawa, president and CEO of MHI, commented: “This transaction represents one of the most important steps in our strategic journey to build a strong, global aviation capability. It augments these efforts by securing a world-class and complementary set of aviation-related functions including maintenance, repair and overhaul (MRO), engineering and customer support.”
Izumisawa concluded, “The CRJ programme has been supported by tremendously talented individuals. In combination with our existing infrastructure and resources in Japan, Canada and elsewhere, we are confident that this represents one effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family. MHI has a decades-long history in Canada, and I hope this transaction will result in the expansion of our presence in the country, and will represent a significant step in our growth strategy.”
Alain Bellemare, president and chief executive officer of Bombardier, said: “We are very pleased to announce this agreement, which represents the completion of Bombardier’s aerospace transformation. We are confident that MHI’s acquisition of the programme is the best solution for airline customers, employees and shareholders. We are committed to ensuring a smooth and orderly transition.
“With our aerospace transformation now behind us, we have a clear path forward and a powerful vision for the future. Our focus is on two strong growth pillars: Bombardier Transportation, our global rail business, and Bombardier Aviation, a world-class business jet franchise with market-defining products and an unmatched customer experience.”
The CRJ production facility in Mirabel, Québec will remain with Bombardier. Bombardier will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the second half of 2020, following the delivery of the current backlog of aircraft.