Mitsubishi Heavy Industries (MHI) acquired Bombardier Canadair Regional Jet (CRJ) Series for $550 million and launched MHI RJ Aviation Group regional jet service and support unit.
“Headquartered in Montréal, Canada, MHI RJ Aviation Group (MHIRJ) is launching as a newly created group of entities providing a holistic service and support solution for the global regional aircraft industry including the CRJ Series aircraft. The launch of MHIRJ coincides with the acquisition close of the CRJ Series Program from Bombardier Inc. (Bombardier) by MHI,” the company said in a statement on June 1.
In June 2019, Mitsubishi and Bombardier had entered into an agreement, whereby MHI will acquire Bombardier's regional jet program for a cash consideration of $550 million, payable to Bombardier upon closing, and the assumption by MHI of liabilities amounting to approximately $200 million.
Under the agreement, Bombardier's net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $180 million, will be transferred to MHI.
As part of the acquisition, MHI acquires the maintenance, engineering, airworthiness certification support, refurbishment, asset management, marketing, and sales activities for the CRJ Series aircraft, along with the type certificates and related intellectual property rights. This transaction also includes the related services and support network mainly located in Mirabel and Toronto (Canada), and Bridgeport and Tucson (United States). CRJ Series Spare parts will continue to be distributed from depots in Chicago (United States) and Frankfurt (Germany).
Complementary to MHI's existing commercial aircraft business, MHIRJ will provide a holistic servicing and support solution for the global aircraft industry including the CRJ Series aircraft, and eventually, for the Mitsubishi SpaceJet family of next-generation regional jets.
Bombardier will continue to supply components and spare parts and will assemble the remaining 15 CRJ aircraft in the backlog on behalf of MHI until all get delivered before 2021.
Last year, Bombardier sold its Q400 turboprop business to an affiliate of Longview Aviation Capital Corp. for about $250 million. In February, the company announced the sale of its remaining stake in regional jet business — rebranded as the Airbus A220 — to Airbus SE.