Free press releases distribution network?

Agency / Source: Empresa Brasileira de Aeronáutica S.A.

Check Ads Availability|e-mail Article
This article was published free of charge. Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!



Boeing and Embraer to Establish Strategic Aerospace Partnership to Accelerate Global Aerospace Growth - Boeing and Embraer announced they have signed a Memorandum of Understanding to establish a strategic partnership that positions both companies to accelerate growth in global aerospace markets [NYSE: BA] - Boeing.com / Embraer.com
Boeing and Embraer to Establish Strategic Aerospace Partnership to Accelerate Global Aerospace Growth

 

PRTODAY - Newswire & PRZOOM/ - Chicago, IL, United States, 07/05/2018 - Boeing and Embraer announced they have signed a Memorandum of Understanding to establish a strategic partnership that positions both companies to accelerate growth in global aerospace markets [NYSE: BA] - Boeing.com / Embraer.com.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Aviation/Aerospace Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

The non-binding agreement proposes the formation of a joint venture comprising the commercial aircraft and services business of Embraer that would strategically align with Boeing’s commercial development, production, marketing and lifecycle services operations. Under the terms of the agreement, Boeing will hold an 80 percent ownership stake in the joint venture and Embraer will own the remaining 20 percent stake.

“By forging this strategic partnership, we will be ideally positioned to generate significant value for both companies’ customers, employees and shareholders and for Brazil and the United States,” said Dennis Muilenburg, Boeing’s Chairman, President and Chief Executive Officer. “This important partnership clearly aligns with Boeing’s long-term strategy of investing in organic growth and returning value to shareholders, complemented by strategic arrangements that enhance and accelerate our growth plans,” Muilenburg said.

“The agreement with Boeing will create the most important strategic partnership in the aerospace industry, strengthening both companies’ leadership in the global market,” said Paulo Cesar de Souza e Silva, Embraer Chief Executive Officer and President. “The business combination with Boeing is expected to create a virtuous cycle for the Brazilian aerospace industry, increasing its sales potential, production, creating jobs and income, investments and exports, and in doing so, adding more value to customers, shareholders and employees.”

The transaction values 100 percent of Embraer’s commercial aircraft operations at $4.75 billion, and contemplates a value of $3.8 billion for Boeing’s 80 percent ownership stake in the joint venture. The proposed partnership is expected to be accretive to Boeing’s earnings per share beginning in 2020 and to generate estimated annual pre-tax cost synergies of approximately $150 million by year three.

The strategic partnership will bring together more than 150 years of combined leadership in aerospace and leverage the two companies’ highly complementary commercial product lines. The partnership is a natural evolution of a long-standing history of collaboration between Boeing and Embraer over more than 20 years.

On finalization, the commercial aviation joint venture will be led by Brazil-based management, including a President and Chief Executive Officer. Boeing will have operational and management control of the new company, which will report directly to Muilenburg.

The joint venture will become one of Boeing’s centers of excellence for end-to-end design, manufacturing, and support of commercial passenger aircraft, and will be fully integrated into Boeing’s broader production and supply chain.

Boeing and the joint venture would be positioned to offer a comprehensive, highly complementary commercial airplane portfolio that ranges from 70 seats to more than 450 seats and freighters, offering best-in-class products and services to better serve the global customer base.

In addition, both companies will create another joint venture to promote and develop new markets and applications for defense products and services, especially the KC-390 multi-mission aircraft, based on jointly-identified opportunities.

"Joint investments in the global marketing of the KC-390, as well as a series of specific agreements in the fields of engineering, research and development and the supply chain, will enhance mutual benefits and further enhance the competitiveness of Boeing and Embraer," said Nelson Salgado, Embraer's Executive Vice President, Financial and Investor Relations.

Finalization of the financial and operational details of the strategic partnership and negotiation of definitive transaction agreements are expected to continue in the coming months. Upon execution of these agreements, the transaction would then be subject to shareholder and regulatory approvals, including approval from the Government of Brazil, as well as other customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is expected to close by the end of 2019, 12-18 months after execution of the definitive agreements.

“This strategic partnership is a natural evolution of the long-standing history of collaboration between Boeing and Embraer on a range of aerospace initiatives over almost three decades,” said Greg Smith, Boeing Chief Financial Officer and Executive Vice President of Enterprise Strategy & Performance. “It is aligned with Boeing’s enterprise strategy of pursuing strategic investment opportunities where they demonstrate real value and accelerate our organic growth plans. This partnership will strengthen the vertical capabilities of Boeing and enhance value for our customers through the full lifecycle of industry-leading products and services.”

Boeing (boeing.com) and Embraer (embraer.com) will benefit from a broader scale, resources and footprint, including global supply chain, sales and marketing, and services network, which will enable them to capture benefits from best-in-class efficiencies across the organizations. Additionally, the strategic partnership will provide opportunities to share best practices in manufacturing and across development programs

The transaction will have no impact on Boeing and Embraer financial guidance for 2018 or Boeing’s cash deployment strategy and commitment to returning approximately 100 percent of free cash flow to shareholders.

Forward-Looking Information Is Subject to Risk and Uncertainty Certain statements in this release may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding benefits and synergies of the joint venture and future business prospects, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially from these forward-looking statements. As a result, these statements speak only as of the date they are made and neither party undertakes an obligation to update or revise any forward-looking statement, except as required by law. Specific factors that could cause actual results to differ materially from these forward-looking statements include the effect of global economic conditions, the ability of the parties to reach final agreement on a transaction, consummate such a transaction and realize anticipated synergies, and other important factors disclosed previously and from time to time in the filings of The Boeing Company and/or Embraer with the Securities and Exchange Commission.

Contact: Chaz Bickers Boeing Communications; P: 312-544-2002 - E: charles.n.bickers[.]boeing.com.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Aviation/Aerospace Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Agency / Source: Empresa Brasileira de Aeronáutica S.A.

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick PRTODAY - Newswire Distribution Service Visibility Checker

 

Distribution / Indexing: [+] [Content made possible by PRZOOM / PRTODAY indexing services]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Aviation/Aerospace articles,
CATCH Visitors via Your Competitors Announcements!


Boeing and Embraer to Establish Strategic Aerospace Partnership to Accelerate Global Aerospace Growth

Non-featured company website links are shown on a random basis
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name PRTODAY - Newswire Distribution Service and LINK as the source.
 
  For more information, please visit:
Links are available on a random basis for non premium members
Embraer | Boeing
Contact: Valtecio Alencar - Embraer.com 
+55 11 3040 6891 valtecio.alencar[.]embraer.com.br
 
Newswire Today - PRZOOM disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.

Aviation/Aerospace via RSS
AddThis press release: Boeing and Embraer to Establish Strategic Aerospace Partnership to Accelerate Global Aerospace GrowthAdd Aviation/Aerospace News to My MSNAdd Aviation/Aerospace News to My Yahoo!Add NewswireToday Aviation/Aerospace Press Release Headline News to Your Google homepage or Google ReaderAdd NewswireToday - PRZOOM Headline News to FeedBurner

This article was published free of charge. Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!




Read More Articles From Empresa Brasileira de Aeronáutica S.A. / Company Profile



Read Aviation/Aerospace Most Recent Related Press Releases:

Leonardo and African Group Paramount Signed A LoI to Evaluate A Cooperation for A Weaponized Configuration of the M-345 for the African Market
ESA Chooses Thales Alenia Space to Support Data Processing from Sentinel 2A and 2B Earth Observation Satellites
New £2M Leonardo Academy Development Opens in Lincoln to Train the Cyber and Electronic Warriors of The Future
Leonardo Signs MoU with Aireon to Integrate Space-based Automatic Dependent Surveillance-Broadcast (ADS-B) Data into its Suite of Automation Products
The 'Shark' E190-E2 Arrives in Europe for the Demonstration Tour
Thales and Gemalto Are Granted Regulatory Clearance by The CFIUS
Embraer Extends Pool Agreement to Support LOT’s Fleet
CFM International, IATA Sign Landmark Agreement
Airbus’s Giant BelugaXL Cargo Plane Makes First Flight, with A Major Contribution from Safran
Embraer and Kenya Airways Sign Comprehensive Spare Parts Support Contract

Reserve This Permanent SPACE

Your LOGO permanently HERE on PRTODAY - Newswire Distribution Service most visited Page start at $295 per month

 
Sponsored Links


Visit  medeuronet UK Ltd

Visit  RightITnow, Inc.

Visit Reverie Language Technologies (P) Ltd





Find business coaching, life coaching, executive coaching and corporate coaching, best selling coaching books, ...



 
  ©2014 PRTODAY — Limelon Advertising, Co.
Home | About PRTODAY | Advertise | Contact | Investors | Sitemap | FRANCAIS
newswire, PR free press releases distribution magazines engine news alert newsroom press room breaking news public relations articles company news alerts blogsIt younews.me newswiredistribution ezine younews.asia bizentrepreneur biznewstoday digital business report news market search pr firms pr agencies business reports newswire today distri- bution investor relation successful internet entrepreneur free newswire distribution prtoday freenewswiredistribution.com asianewstoday bizwiretoday newswire pr today
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)