Bombardier announced a definitive agreement to acquire the Global 7500 wing program from Triumph Group Inc.

The acquisition will strengthen Bombardier’s position as a leading aerostructures manufacturer and secure the production ramp-up and long-term success of Bombardier’s flagship business jet.

The acquired operations will be incorporated into Bombardier’s Aerostructures and Engineering Services segment. To support a seamless transition of wing production and deliveries for the Global 7500 program, which successfully entered into service in December 2018,

Bombardier will enter into a lease agreement for Triumph’s Red Oak, Texas, facility and continue to operate the production line with the employees currently supporting the program.

The acquisition of the program’s assets and obligations for a nominal cash consideration is expected to close in the first quarter of 2019, subject to certain closing conditions.

Bombardier will assume ongoing working capital investments and usual costs associated with the program’s production ramp-up, which are expected to fall within Bombardier’s consolidated 2019 EBIT before special items and free cash flow guidance ranges, and 2020 objectives.

On a business segment level, Aerostructures revenue guidance for 2019 is adjusted upwards to between $2.25 billion to $2.50 billion, reflecting additional intersegment revenues.