Spirit AeroSystems Salvages Deal With Bombardier, Reduces Boeing Concerns

Spirit AeroSystems (NYSE: SPR) has reworked its deal to buy the aerostructures business of Bombardier (OTC: BDRAF) (OTC: BDRBF), finding a way to get the deal done despite significant COVID-19 headwinds.

The agreement allows Spirit to salvage at least part of its grand plan to diversify away from former parent Boeing (NYSE: BA), which should be a long-term positive for the company. But it does little to change the near-term outlook for a company that is going to have a hard time gaining altitude as long as airlines are grounded.

In October 2019, Spirit announced plans to buy the aerostructures business of Bombardier for $1.09 billion, including $500 million in cash and $590 million in assumed liabilities. The deal was designed to boost Spirit's business with Airbus (OTC: EADSY), including making wings and other components for the promising A220 jet.

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Source Fool.com