This mini-acquisition should sync well with the current training services for CAE and give the company additional leadership in its segment.
CAE INC. (CAE.TO) and Bombardier Inc. (BBD-A.TO)
from The Successful Investor
Updated from Investment Digest 754, February 19, 2014
CAE INC. (CAE.TO) is buying the military flight-training business of Bombardier Inc. (BBD-A.TO).
This business trains pilots for the Royal Canadian Air Force and other NATO countries at facilities in Moose Jaw, Saskatchewan, and Cold Lake, Alberta.
CAE will pay $19.8 million when it closes the deal later this year. This a small sum for both companies, but the new operations are a nice fit with CAE’s other pilot-training businesses. After the sale, Bombardier can focus on its struggling aircraft-manufacturing business, including the upcoming launch of its new CSeries passenger jet.
CAE is our #1 buy for 2015.
Bombardier B stock is still a buy, but only for aggressive investors.
Patrick McKeough, The Successful Investor, www.tsinetwork.ca, 877-656-6461, March 2015