Alstom’s €5.8 Billion Acquisition of Bombardier Train Unit

Freshfields and McCarthy Tétrault advised CDPQ. Cleary Gottlieb represented Alstom and Jones Day acted as counsel to Bombardier. Fried Frank acted as counsel to Citi as financial advisor to Bombardier Inc. Davies is acting as Canadian counsel to Alstom S.A.

Bombardier (TSX: BBD.B) announced that it has made the strategic decision to focus exclusively on business aviation and plans to accelerate its deleveraging through the sale of its rail business.

Bombardier has signed a Memorandum of Understanding (MOU) with Alstom SA and the Caisse de dépôt et placement du Québec (“la Caisse”) for the sale of its Transportation business to Alstom. Under the transaction, Bombardier and la Caisse will sell their interests in Bombardier Transportation to Alstom on the basis of an enterprise value of $8.2 billion (EUR ~7.45 billion). Total proceeds, after the deduction of debt-like items and transferred liabilities, including pension obligations, and net of BT cash, are expected to be approximately $6.4 billion, subject to upward adjustments of up to $440 million. After deducting la Caisse’s equity position between $2.1 billion and $2.3 billion, Bombardier would receive net proceeds of between $4.2 to $4.5 billion, including $550 million of Alstom shares for a fixed subscription price of EUR 47.50, monetizable after a three-month lock-up post-closing, subject to closing adjustments, indemnities and the EUR to USD exchange rate. Bombardier intends to direct these proceeds towards debt paydown and will evaluate the most efficient debt reduction strategies.

The transaction recognizes the significant value created at Transportation since the beginning of the turnaround.

Freshfields team was led by Yann Gozal (Photo), and included Florent Mazeron, Arnaud Mouton, Victor Cann (M&A), Rafique Bachour, Laurent Bougard (Regulatory), Christel Cacioppo, Gwen Senlanne (Employment), Vincent Daniel-Mayeur et Juliette Brasart (Tax).

Davies acted as Canadian counsel to Alstom S.A. with a team including William Rosenberg, Vincent Mercier, Franziska Ruf, Fotini Gagaoudakis and Olivier Désilets (Corporate/M&A); Brian Bloom (Tax); Alexandria Pike (Environmental); Elisa Kearney, John Bodrug and Jim Dinning (Competition); and Louis-Martin O’Neill and Faiz Lalani (Litigation).

Jones Day advised Bombardier with Bernard Amory, Charles de Navacelle, Serge Clerckx, Henry de La Barre, Lucia Stoican, Tristan Verminck, Florent Bouyer, Sophie Hagège, Pierre Larcher, and Raphaël Ben Chemhoun.

Cleary Gottlieb advised Bombardier with Pierre-Yves Chabert, Jeanne Theuret, Thierry Diouf, Thomas Bres Pintat, Banche d’Aramon, Antoine Ciolfi (M&A), Anne-Sophie Coustel (Tax), Antoine Winckler (Antitrust), Jérôme Hartemann (Employment), Caroline Hailey (Compliance), Emmanuel Ronco (IP&IT).

The Fried Frank team was led by corporate partner Philip Richter and included corporate associates Mehar Najeeb and Roy Tannenbaum.

Involved fees earner: Thomas Bres Pintat – Cleary Gottlieb Steen & Hamilton; Pierre-Yves Chabert – Cleary Gottlieb Steen & Hamilton; Antoine Ciolfi – Cleary Gottlieb Steen & Hamilton; Anne-Sophie Coustel – Cleary Gottlieb Steen & Hamilton; Thierry Diouf – Cleary Gottlieb Steen & Hamilton; Banche d’Aramon – Cleary Gottlieb Steen & Hamilton; Caroline Hailey – Cleary Gottlieb Steen & Hamilton; Jerome Hartemann – Cleary Gottlieb Steen & Hamilton; Emmanuel Ronco – Cleary Gottlieb Steen & Hamilton; Jeanne Theuret – Cleary Gottlieb Steen & Hamilton; Antoine Winckler – Cleary Gottlieb Steen & Hamilton; Bertrand Cardi – Darrois Villey Maillot Brochier; Stanislas Darrois – Darrois Villey Maillot Brochier; Cécile de Narp – Darrois Villey Maillot Brochier; Laurent Gautier – Darrois Villey Maillot Brochier; Christopher Grey – Darrois Villey Maillot Brochier; Martin Lebeuf – Darrois Villey Maillot Brochier; Didier Théophile – Darrois Villey Maillot Brochier; Christophe Vinsonneau – Darrois Villey Maillot Brochier; Brian Bloom – Davies Ward Philips & Vineberg; John Bodrug – Davies Ward Philips & Vineberg; Olivier Désilets – Davies Ward Philips & Vineberg; Jim Dinning – Davies Ward Philips & Vineberg; Fotini Gagaoudakis – Davies Ward Philips & Vineberg; Elisa Kearney – Davies Ward Philips & Vineberg; Faiz Lalani – Davies Ward Philips & Vineberg; Vincent Mercier – Davies Ward Philips & Vineberg; Louis-Martin O’Neill – Davies Ward Philips & Vineberg; Alexandria Pike – Davies Ward Philips & Vineberg; William Rosenberg – Davies Ward Philips & Vineberg; Franziska Ruf – Davies Ward Philips & Vineberg; Rafique Bachour – Freshfields Bruckhaus Deringer LLP; Laurent Bougard – Freshfields Bruckhaus Deringer LLP; Juliette Brasart – Freshfields Bruckhaus Deringer LLP; Christel Cacioppo – Freshfields Bruckhaus Deringer LLP; Victor Cann – Freshfields Bruckhaus Deringer LLP; Vincent Daniel-Mayeur – Freshfields Bruckhaus Deringer LLP; Yann Gozal – Freshfields Bruckhaus Deringer LLP; Florent Mazeron – Freshfields Bruckhaus Deringer LLP; Arnaud Mouton – Freshfields Bruckhaus Deringer LLP; Gwen Senlanne – Freshfields Bruckhaus Deringer LLP; Mehar Najeeb – Fried Frank Harris Shriver & Jacobson; Philip Richter – Fried Frank Harris Shriver & Jacobson; Roy Tannenbaum – Fried Frank Harris Shriver & Jacobson; Bernard Amory – Jones Day; Raphaël Ben Chemhoun – Jones Day; Florent Bouyer – Jones Day; Serge Clerckx – Jones Day; Henry de La Barre – Jones Day; Charles de Navacelle – Jones Day; Sophie Hagège – Jones Day; Pierre Larcher – Jones Day; Lucia Stoican – Jones Day; Tristan Verminck – Jones Day; Baptiste Allais – PWC Société d’Avocats; Elefterija Balkoska – PWC Société d’Avocats; Jean-Philippe Brillet – PWC Société d’Avocats; Lucie Lebreton – PWC Société d’Avocats; Valérie Schmit – PWC Société d’Avocats;

Law Firms: Cleary Gottlieb Steen & Hamilton; Darrois Villey Maillot Brochier; Davies Ward Philips & Vineberg; Freshfields Bruckhaus Deringer LLP; Fried Frank Harris Shriver & Jacobson; Jones Day; PWC Société d’Avocats;

Clients: Alstom; Bombardier; Bouygues SA; Caisse de dépôt et placement du Québec (CDPQ); Citibank;