Thursday, 2 January 2020

Latécoère to acquire Bombardier’s electrical wiring business in Querétaro

Latécoère and Bombardier have announced they have entered into a definitive agreement for Latécoère to buy Bombardier’s electrical wiring interconnection system (EWIS) assets in Querétaro, Mexico. 

Latécoère will pay Bombardier a cash consideration of USD 50 million for the EWIS department which has an annual turnover of 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.”

Around 700 people are employed to the manufacture of EWIS at Bombardier’s facility in Querétaro and most of these jobs are understood to be safe with this take over by Latécoère and the firm will continue to supply the EWIS for all Bombardier Aviation platforms. 

Bombardier has said the sale of the EWIS will not impact the rest of Bombardier’s operations at the Querétaro site, which also makes the aft fuselage for the Global family of business aircraft along with other major structures for Bombardier aircraft.  However, Bombardier's longterm plans are to extricate itself from the aviation industry, witnessed in recent years by the selling of many aviation assets at, what many in the industry say, is below market value. This latest deal is said to supports Bombardier Aviation’s transformation and "sharpens the company’s focus on its core manufacturing capabilities.". 

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