Bombardier Concludes Sale of the CRJ Series Regional Jet Program to Mitsubishi Heavy Industries
(Source: Bombardier Inc.; issued June 01, 2020)
MONTREAL --- Bombardier confirmed today the closing of the previously announced sale of the CRJ Series aircraft program to Mitsubishi Heavy Industries, Ltd (MHI) for a cash consideration of approximately $550 million, subject to post-closing adjustments and the assumption of liabilities by MHI related to credit and residual value guarantees and lease subsidies amounting to approximately $200 million.
Under the agreement, the Corporation's net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $170 million, has been transferred to MHI.
Through this sale, MHI acquires the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, including the related services and support network located in Montréal, Québec, and Toronto, Ontario, and its service centres located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.
Bombardier will continue to supply components and spare parts and will assemble the remaining 15 CRJ aircraft in the backlog as of March 31, 2020 on behalf of MHI until the complete delivery of the current backlog, expected in the second half of 2020.
Bombardier retains certain liabilities representing a portion of the credit and residual value guarantees totalling $288 million as of March 31, 2020. This amount is largely fixed and not subject to future changes in aircraft value and is mainly payable by Bombardier over the next four years.
With over 60,000 employees across two business segments, 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.
MHI RJ Aviation Group Launches as Mitsubishi Heavy Industries Ltd. Closes Acquisition of CRJ Series Program from Bombardier Inc.
(Source: Mitsubishi Heavy Industries, Ltd.; issued June 01, 2020)
MONTREAL --- Headquartered in Montréal, Canada, MHI RJ Aviation Group (MHIRJ) is launching as a newly created group of entities providing a holistic service and support solution for the global regional aircraft industry including the CRJ Series aircraft. The launch of MHIRJ coincides with the acquisition close of the CRJ Series Program from Bombardier Inc. by Mitsubishi Heavy Industries, Ltd. (MHI)
"I am pleased to announce the opening chapter of MHIRJ's story," said Hiroaki Yamamoto, President & CEO of the MHI RJ Aviation Group. "Building on the solid foundations already in place and with the strong support of the MHI group of companies, there is new energy on board and our team is committed to serving the regional aviation market and becoming a platform for growth in the industry.
"As part of the acquisition, MHI acquires the maintenance, engineering, airworthiness certification support, refurbishment, asset management, marketing, and sales activities for the CRJ Series aircraft, along with the type certificates and related intellectual property rights. This transaction also includes the related services and support network mainly located in Mirabel and Toronto (Canada), and Bridgeport and Tucson (United States). CRJ Series Spare parts will continue to be distributed from depots in Chicago (United States) and Frankfurt (Germany).
MHI RJ Aviation Group (MHIRJ) provides comprehensive critical operational, engineering and customer support solutions including maintenance, refurbishment, technical publications, marketing and sales activities for the global regional aircraft industry.
Headquartered in Montréal, Quebec, and bolstered by an Aerospace Engineering Center, MHIRJ's network of service centres, support offices and parts depots are positioned in important aviation hubs in the U.S., Canada and Germany.
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, is one of the world's leading industrial firms with 80,000 group employees and annual consolidated revenues of around US$38 billion.