Bombardier Sells its 50% Interest in Shorts Missile
Systems Ltd to Thomson-CSF
DECEMBER 23, 1999
MONTREAL, QUEBEC--Bombardier Inc. of Canada and Thomson-CSF of
France have entered into an agreement to transfer to Thomson-CSF
Bombardier's share of their 50:50 joint venture company, Shorts
Missile Systems Ltd (SMS) which is headquartered in Northern Ireland.
The transaction is scheduled to be completed on Jan. 31, 2000.
Robert E. Brown, president and chief executive officer for
Bombardier said: "We believe the transfer of Bombardier's 50 per
cent share to Thomson-CSF, which is a world leader in the defence
electronics business sector, is in the long term interests of SMS
and its employees.
"SMS's very successful missiles business has been built up over
many years on the solid foundation of technological excellence.
The major new pounds sterling 200 million (Cdn$470 million) order
for Starstreak(R) from the Ministry of Defence and the selection
of SMS to partner Raytheon in its bid to supply the next
generation of air to air missiles (BVRAAM) are proof of its past
performance and future potential. It has excellent facilities for
both engineering and production activities.
"SMS will be much better placed to realise its potential as a
fully integrated part of the core activities of a large player in
the global defence industry, instead of being partly owned by
Bombardier, whose core aerospace business is the design and
manufacture of civilian aircraft."
SMS was formed as a joint venture in 1993 between Short Brothers
plc, a subsidiary of Bombardier Inc., and Thomson-CSF of France.
The company employs 550 people in Belfast and in France. Its
products include the Starburst and Starstreak missile systems in
addition to command and control and other defence systems.
Bombardier Aerospace, a unit of Bombardier Inc., is the world's
third largest civil aircraft manufacturer with operations in three
countries. Leading the 20-to 70-passenger regional carrier
market, Bombardier Aerospace offers complete families of turboprop
and regional jet aircraft. It has the industry's widest range of
business jets, offering both full and fractional ownership, and
also produces firefighting/maritime mission aircraft. It provides
technical services, aircraft maintenance and pilot training to
business, regional airline and military customers.
Bombardier Inc. is a Canadian corporation active in the fields of
aerospace, rail transportation equipment, recreational products,
financial services and services related to its products and core
businesses. It operates plants in 12 countries in North America,
Europe and Asia, and more than 90 per cent of its revenues are
generated outside Canada. Bombardier's revenues for its fiscal
year ended January 31, 1999 totalled $11.5 billion (Cdn).
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