CAE confirmed today that it has concluded the previously announced acquisition of Bombardier’s Business Aircraft Training (BAT) business for an enterprise value of US$645 million. All the required conditions for closing have been met.
The acquisition of Bombardier’s flight and technical training operations expands CAE’s ability to address the training market for customers operating Bombardier business jets, which at more than 4,800 aircraft, is one of the largest and most valuable in-service fleets of business aircraft in the world. The acquisition also serves to expand CAE’s position in the largest and fastest growing segment of the business aviation training market, involving medium- and large-cabin business jets. It provides CAE with talented people, a loyal customer base, and an established recurring training business which is highly complementary to CAE’s network. The Bombardier BAT business includes a modern fleet of full-flight simulators and training devices covering the Bombardier Learjet, Challenger and Global product lines, including the latest large cabin Global 5500, 6500 and 7500 business jets.
“We are pleased to welcome Bombardier customers and employees to CAE,” said Marc Parent, CAE’s President and CEO. “Bombardier business jet customers will have access to a seamless training experience in our global network of training centres, providing the most advanced training solutions on the market by leveraging our continued investments in training.”
With this agreement, CAE will be adding 12 Bombardier business aviation full-flight simulators located in Dallas and Montreal to its training network (including one deployment already planned for CAE’s fiscal year 2021), for a total of 29 Bombardier business aviation full-flight simulators available for training worldwide, with further growth planned in the near- to mid-term.
The acquisition, which was first announced on November 8, 2018, is expected to provide high single-digit EPS accretion for CAE within its first full year and to be free cash flow(1) accretive as well.
CAE also concluded the issuance of term loans and US$450 million of the US$550 million of senior unsecured notes that were announced on December 21, 2018. The remaining balance of US$100 million of senior unsecured notes will be drawn for the refinancing of existing debt in December 2019.
TD Securities acted as exclusive financial advisor to CAE.
Date: Mar 15, 2019