CAE Inc. purchases Bombardier's Business Aircraft Training division for an estimated $645 million in the deal.
In a strategic move to capitalize on the growing demand for training in the business aviation industry, CAE Inc., a Canadian manufacturer of simulation technologies, modelling technologies, and training services, completed the acquisition of Bombardier's Business Aircraft Training (BAT) business on March 14, 2019. The enterprise value of the acquisition was US$645 million.
The acquisition was a significant step in CAE’s ongoing expansion in the business aviation sector, leveraging Bombardier’s established presence to extend global reach and strengthen training service capabilities. Hoskin & Harcourt LLP represented CAE Inc. in the acquisition, with Francois Paradis, Matthew Oliver, Michael Budabin McQuown, Jean-Philippe Bertrand, Peter Glossop, Manon Thivierge, Paul Seraganian, Zack Crawford, and Julien Ranger-Musiol from the law firm playing key roles in the Corporate, Competition/Antitrust, Tax, and Labour, Pensions & Benefits teams respectively.
The acquisition was driven by CAE’s ambition to become the leading global provider of business aircraft pilot training. Bombardier's BAT business, which specialized in training pilots for Bombardier's fleet of business jets, offered CAE a unique opportunity to integrate its extensive flight training assets, facilities, and expertise into its own operations. This acquisition expanded CAE’s global training network, giving it access to Bombardier’s customer base and advanced simulation technology for business aircraft pilots.
The implications of the acquisition are far-reaching. CAE became one of the largest global providers of business aviation training with an expanded portfolio, increasing its market share and competitive edge. The incorporation of Bombardier’s simulators and training infrastructure improved CAE’s technological capability and training offerings. Access to Bombardier’s business aviation clients facilitated growth opportunities and cross-selling of CAE’s other aviation training services. Streamlining operations and leveraging economies of scale in the training business allowed CAE to optimize costs and increase efficiency.
Moreover, continuing training services for Bombardier aircraft supported fleet operators' needs and maintained continuity of training quality. The acquisition responded to the growing demand for high-quality pilot training amid increasing business jet fleets worldwide.
Bombardier Inc., a multinational aerospace and transportation company based in Montreal, sold its BAT business to CAE Inc. as part of its ongoing restructuring efforts. The sale represented a significant investment in the future of the business aviation training market.
In conclusion, the acquisition of Bombardier's BAT business by CAE Inc. was a strategic move to capitalize on the growing demand for training in the business aviation industry. It significantly expanded CAE’s capabilities in the business aviation sector and positioned the company for continued growth in the global business aviation training market.
