Bombardier Signs a Sale and Purchase Agreement for
DaimlerChrysler Rail Systems (Adtranz)
MONTREAL, QUEBEC--AUGUST 4, 2000 - 07:19 EDT--Bombardier Inc. today announced it has signed a
sale and purchase agreement with DaimlerChrysler AG of Stuttgart,
Germany to acquire its subsidiary DaimlerChrysler Rail Systems
GmbH (Adtranz), based in Berlin.
The transaction is subject to the approval of all appropriate
regulatory authorities.
The sale and purchase agreement is for a cash consideration of
US$725 million (Cdn$1.1 billion) to be paid by Bombardier for
DaimlerChrysler Rail Systems (Adtranz). The proceeds from the
planned disposal of some of Adtranz's businesses, namely Fixed
installations and Signalling, currently in the process of being
sold to other parties, would reduce the net purchase price for
Bombardier.
"The combination of Bombardier Transportation and Adtranz will
position the new entity among the industry leaders in all
activities related to the production of rail vehicles in world
markets," stated President and Chief Executive Officer of
Bombardier, Robert E. Brown. "This acquisition would complement
our transportation activities in terms of geographical markets,
products and services, broader capabilities, expertise and assets.
Adding the excellent management and personnel of Adtranz to our
own is a very attractive aspect of this transaction. Moreover, a
stronger transportation business will improve the balance between
Bombardier's core activities which also include aerospace,
recreational products and financial services," noted Mr. Brown.
Commenting on the purchase by Bombardier, Jürgen Schrempp,
Chairman of DaimlerChrysler's Board of Management said: "Having
progressively increased Adtranz's performance to a breakeven
point, it is now an appropriate time to place Adtranz with a
company which values rail activities as one of its core
businesses. We feel Bombardier is the company best equipped to
take Adtranz into the future."
As an integrated transportation equipment manufacturer, Adtranz is
present in major markets around the world with 22,000 employees,
including 3,600 at Fixed installations and Signalling, and
facilities in 19 countries on four continents. Adtranz's revenues
for 1999 totalled Cdn$5 billion (US$3.4 billion). Bombardier
Transportation currently employs 16,000 people and its revenues
for the fiscal year ended January 31, 2000 reached Cdn$3.4 billion
(US$2.3 billion).
According to Bombardier Transportation President and Chief
Operating Officer, Jean-Yves Leblanc : "The coming together of our
two entities will benefit customers as it will allow us to offer a
full range of state-of-the-art products and services. Our access
to complementary technologies, such as propulsion systems, train
control and communications systems and electric locomotives, will
enhance our ability to compete vigorously in all markets."
"Combining the valuable expertise and the capabilities of Adtranz
with our own will enable the new organization to be a full-fledged
player in the worldwide rail industry, with a manufacturing
presence in 23 countries," he added.
Bombardier Inc., a diversified manufacturing and service company,
is a world leading manufacturer of business jets, regional
aircraft, rail transportation equipment and motorized recreational
products. It is also a provider of financial services and asset
management. The Corporation employs 56,000 people in 12 countries
in North America, Europe and Asia, and more than 90 % of its
revenues are generated outside Canada. Bombardier's revenues for
its fiscal year ended Jan. 31, 2000 totalled $13.6 billion Cdn
($9.1 billion US). |
