January 24, 2019 / 11:20 AM / 7 months ago

Bombardier to buy Global jet wing-making unit from Triumph

FILE PHOTO - A Bombardier trade pavilion is seen at Farnborough International Airshow in Farnborough, Britain, July 17, 2018. REUTERS/Toby Melville

(Reuters) - Canada’s Bombardier Inc (BBDb.TO) said on Thursday it will buy a wing manufacturing unit from aircraft parts supplier Triumph Group (TGI.N) to boost its business jets program.

Financial terms of the deal were not disclosed, but Bombardier said it would buy the assets for a “a nominal cash consideration.”

Bombardier, which is in the middle of a restructuring, is counting on sales of its Global 7500 and other new large-cabin aircraft to boost revenue at its business jet division.

The Canadian company said the deal, expected to close in the first quarter, will lift its 2019 revenue estimates for the Aerostructures unit to between $2.25 billion to $2.50 billion in 2019, up from prior estimate of $2 billion.

The deal will not affect Bombardier’s 2020 financial targets, the company said.

Bombardier and Triumph settled here a commercial dispute related to the design, manufacture and supply of wing components for the plane maker's Global 7000 business aircraft in 2017.

Reporting by Nivedita Bhattacharjee; Editing by Arun Koyyur

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