Bombardier in talks to sell three plants to Spirit AeroSystems for $1 billion

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Bombardier in talks to sell three plants to Spirit AeroSystems for $1 billion

Canada’s multinational manufacturer Bombardier Inc is in advanced talks to sell three of its facilities to Spirit AeroSystems for more than $1 billion in cash and assumed liabilities according to two sources familiar with the matter on Thursday.

The two companies are nearing a deal but they cautioned that talks could still fall apart. Both are scheduled to report third quarter earnings on Thursday.

 Bombardier’s plan to sell its two aerostructure facilities, including its plants stationed in Belfast and Morocco, comes as the company sheds its commercial aviation business to focus on its higher-margin business jets and rail divisions.

Analysts have previously said a deal would be strategic for the aerospace components maker, Spirit as it diversifies its customer base away from Boeing Co. Spirit is Boeing’s largest supplier though the company has plans to grow its business with Europe’s Airbus.

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