Latécoère, a portfolio company of Searchlight Capital, has acquired the Mexican electrical wiring and interconnection systems business of Canadian jet manufacturer Bombardier. The deal has an enterprise value of $45 million. France’s Latécoère is an aeronautics business.
TOULOUSE, France–(BUSINESS WIRE)–Regulatory News:
Latécoère (Paris:LAT) today announced that the company has completed its acquisition of Bombardier’s Electrical Wiring and Interconnection Systems (EWIS) business in Querétaro, Mexico. The two companies have also entered into a long-term supply agreement under which Latécoère will continue to provide Bombardier with EWIS systems from this site for all Bombardier platforms including its Global and Challenger aircraft. This acquisition enables Latécoère to expand its customer portfolio by serving beyond Bombardier other customers such as Airbus Canada, MHIRJ and Avcorp.
The EWIS business in Queretaro specializes in electrical harnesses and sub-assemblies necessary for the production of EWIS systems. Annual revenue for this business is estimated at approximately US$60 million. This acquisition also enables Latécoère to expand its customer portfolio and strengthen its order book by serving customers from this site.
“We are pleased to finalize this acquisition and at the same time enter into a long-term supply agreement with Bombardier. With this transaction, Latécoère strengthens its industrial presence internationally and increase its proximity to its customers. It also signals our continued participation in the global consolidation of the aerospace industry,” said Philip Swash, Chief Executive Officer of Latécoère.
“The Bombardier team looks forward to working with Latécoère toward a seamless integration as we continue to build on the successes of both our companies,” said Paul Sislian, Executive Vice President, Operations and Operational Excellence.
Latécoère is acquiring the Querétaro site on the basis of an enterprise value of US$45 million, and will benefit from the added value and significant experience of the Querétaro EWIS team. The transaction will not affect Bombardier’s remaining operations in Querétaro, where it will continue to produce major structures for Bombardier aircraft such as the rear fuselage of the Global family of business jets – including the company’s flagship Global 7500 aircraft – which is the most complex aircraft component manufactured in Mexico.
As a “Tier 1” international partner of the world’s major aircraft manufacturers (Airbus, Boeing, Bombardier, Dassault, Embraer and Mitsubishi Aircraft), Latécoère is active in all segments of the aeronautics industry (commercial, regional, business and military aircraft), in two areas of activity:
Aerostructures (55% of turnover): fuselage sections and doors.
Interconnection Systems (45% of turnover): wiring, electrical furniture and on-board equipment.
As of December 31, 2020, the Group employed 4,169 people in 13 different countries. Latécoère, a French limited company capitalised at €189,637,036 divided into 94,818,518 shares with a par value of €2, is listed on Euronext Paris – Compartment B, ISIN Codes: FR0000032278 – Reuters: LAEP.PA – Bloomberg: LAT.FP