Textron manufactures business jet including Cessna. Credit: Tomás Del Coro via flickr.

Textron has signed a definitive agreement to divest its TRU Simulation + Training Canada (TRU Canada) to CAE.

The acquisition is in line with CAE’s strategic priorities and will expand its global installed base of commercial flight simulators and customers.

As part of this deal, CAE will acquire TRU Simulation + Training Canada’s Montreal manufacturing operations, along with ETOPS entities in France and Malaysia.

It also includes a minority interest in a joint venture in Iceland.

The deal is valued for a cash consideration of $40m, which excludes post-closing adjustments.

Completion of the transaction is based on regulatory approvals and other customary closing conditions and is expected to be completed in the fourth quarter of 2020 or early 2021.

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CAE president and chief executive officer Marc Parent said: “We look forward to integrating the TRU Canada business within CAE.

“This acquisition demonstrates our ability to bolster our position and expand our addressable market and our global customer base during this unprecedented period of disruption.

“Along with the recently announced FSC acquisition, we have been able to make investments that are expected to better enable CAE to meet the global demands of our customers in support of their training and simulation needs.”

The transaction does not include Textron’s Simulation + Training and its operations in Tampa, Florida, which manufactures simulators for Textron Aviation and rotorcraft platforms.