Bombardier closes sale of transportation business to Alstom

MONTREAL — Bombardier has closed the sale of its transportation business to Alstom.

The deal was closed for $6 billion. Bombardier expects net proceeds of about $3.6 million after closing adjustments.

“With this transaction now complete, Bombardier begins an exciting new chapter focused exclusively on designing, building and servicing the world’s best business jets,” says Eric Martel, president and chief executive officer of Bombardier.

In a statement, the company says proceeds from the transaction were lower than previous estimates as a result of the transportation business’s lower-than-expected cash generation in the fourth quarter due in part to unfavourable market conditions, as well as disagreements between the parties about certain adjustments that Bombardier intends to challenge.

The company intends to pay down debt with available proceeds from the sale.