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Spirit announces transfer of Gulfstream wing programs to Triumph Group, Inc.

Spirit AeroSystems Inc. has reached an agreement to transfer the Gulfstream wing work packages at Spirit's facility in Tulsa, Oklahoma, to Triumph Group, Inc. The transfer includes both the G650 and G280 wing programs.

"The Triumph Group emerged as the preferred owner of the Gulfstream wing programs following a rigorous bid process, and the deal offers compelling positives for both companies," said Spirit AeroSystems President & CEO Larry Lawson. "We thoroughly evaluated all of our options and made the best decision for the company, our people and our customers.

"This transfer continues Spirit's transformation and allows us to further focus on our core markets of aerostructures for commercial and defense aircraft. We wish Triumph great success, and we are working closely with them to make this transition smooth for Gulfstream, the employees and the Tulsa community."

Spirit employees who are currently working on the Gulfstream programs will be offered positions with Triumph.

"As for the other Tulsa programs, we are taking a pause in the process to evaluate the remaining work," said Lawson. "There are a number of factors to take into consideration, including exploring our options within the community and with other constituents who have approached us. We won't rush the evaluation and will provide an update as soon as we are ready."

Subject to customary closing conditions, the transaction is expected to close in 2014. The agreement provides for Spirit to make a cash payment to Triumph at closing in the amount of $160 million. The transaction is an estimated loss in the range of $205 million to $235 million ($1.45 to $1.65 per diluted share).

The Company estimates that the transaction will generate a cash tax benefit of approximately $220 million to $230 million which, if the closing occurs in 2014, will be fully realized in 2014 and 2015, with an overall favorable cash result of the transaction, including estimated closing costs, realized in the same period in the range of $55 million to $65 million.

Spirit's 2014 full year financial guidance, which was updated last quarter, of $6.8 - $6.9 billion in revenue, $3.35 - $3.45 earnings per share, and approximately $275 million in free cash flow, excludes the financial impact of the work transfer and the impact of the deferred tax asset valuation release as a result of this transaction.

Press release issued by Spirit AeroSystems, Inc. on December 9, 2014

 

 Contact details from our directory:
Triumph Group, Inc. Aircraft Structural Components, Metal Matrix Composite Structures
Gulfstream Aerospace Corporation Airframer
Spirit AeroSystems, Inc. Wing Flaps, Empennages, Nacelles, Wings, Aircraft Control Surfaces, Aircraft Structural Components, Thrust Reversers, Engine Pylons, Fuselage Sections, Engine Inlets, Wing Spoilers, Fairings, Machining Services

 

 Related aircraft programs:
Gulfstream G650
Gulfstream G280

 

 Related directory sectors:
Structural Components
Airframe Assemblies

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