Bombardier Closes the Sale of Flexjet's Activities

Bombardier announced today the closing of the sale of Flexjet’s activities to Flexjet, LLC, a newly-created company funded by a group led by Directional Aviation Capital. The previously announced total consideration of $185 million US, following purchase price adjustments, is now estimated at $195 million US, including the assumption of an estimated $70 million US of customer advances by the acquirer. This transaction has received the approval of all appropriate regulatory authorities and other consents from government bodies in the U.S.

As a result of this closing, a firm order by Flexjet, LLC for 115 business aircraft (25 Learjet 75, 60 Learjet 85, 20 Challenger 350 and 10 Challenger 605 jets) is now confirmed. The agreement also includes options for an additional 150 business jets. The transaction for the firm aircraft order is valued at approximately $2.4 billion US based on 2013 list prices. If all the options are exercised, the total value of the order will be approximately $5.6 billion US, also based on 2013 list prices.

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Source: Bombardier Inc.
Date: Dec 5, 2013