Alstom's acquisition of Bombardier Transportation now finalized

PLATTSBURGH | After finalizing the sale of its transportation business to Alstom, Bombardier is now fully repositioned in the business jet industry as local leaders welcome the local impacts of the acquisition. On Jan. 29, Bombardier announced the closing of its transportation division sale to the leading French locomotive manufacturer- almost a year after first announcing the impending split from its global rail division. "With this transaction now complete, Bombardier begins an exciting new chapter focused exclusively on designing, building and servicing the world's best business jets," Éric Martel, president and CEO of Bombardier Inc. said in announcing the sale's completion. "With an unmatched product portfolio, a world-class customer services network, and incredibly talented employees, we have a strong foundation to build upon as we use the proceeds from the transaction to begin addressing our balance sheet challenges through debt paydown." Net proceeds to Bombardier stood at $3.6 billion, including $600 million in Alstom shares, and officials said the proceeds will help strengthen liquidity and allow Bombardier to begin debt paydown. With Alstom's official acquisition of the Plattsburgh rail-car manufacturing plant, local leaders are optimistic about the plant's future as "an even more competitive player in the market" with its new added assets and abilities through Alstom. "The Plattsburgh plant is already on course to hum for several years with contracts from New Jersey and elsewhere and now can expect added power in the combined pursuit of new contracts for the future. This is especially timely with talk of a major new federal infrastructure bill this year which would include major new national investment in transportation equipment," North Country Chamber of Commerce President Garry Douglas said shortly after the final sale was announced. Douglas said the acquisition is "a real example of the whole being greater than the sum of the parts, though the sum of the parts is pretty great as well. With more players in the global market, including from Asia, it was time for consolidation of some of the key rail car makers and you couldn't put two stronger and more dynamic operations together than Alstom and Bombardier." Douglas said the chamber already has a working relationship with key executives at the combined company, including Bombardier Transportation team members who will continue, as well as Alstom execs and government affairs operations in Washington. "We are already working with them on transportation issues in a smooth and productive transition," Douglas said. "We will miss the Bombardier name in our region, which has been a historic foundation in our development of a globally important cluster of transportation equipment companies here now numbering more than fifty. But that local legacy now becomes a part of an exciting new future with our friends and partners at Alstom."

Signup for our newsletter

Alstom's acquisition of Bombardier Transportation now finalized

COMPANY

CUSTOMER SUPPORT

SUBMISSION FORMS

BEYOND THE NEWS