Bombardier’s electrical wiring interconnection system (EWIS) assets in Querétaro, Mexico are to be acquired by Latécoère. The companies also signed an additional long-term agreement for Latécoère to supply EWIS products to Bombardier. The transaction 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 supply agreement, Latécoère will continue to supply the EWIS for all Bombardier Aviation platforms – including Global, Challenger and Learjet aircraft – from the current location. The annual turnover of the business is anticipated to be around US$80m.
“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.”
“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$50m. The transaction is intended to further support Bombardier Aviation’s transformation and sharpen the company’s focus on its core manufacturing capabilities.
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.
Latécoère, a Tier 1 partner to major international aircraft manufacturers, specialises in aerostructures including fuselage sections and doors, and interconnection systems including onboard wiring, electrical harnesses and avionics bays.
