Boeing and Embraer announced that they have signed a strategic partnership that positions both companies to accelerate growth in the global aerospace markets.
The non-binding agreement proposes the formation of a joint venture encompassing Embraer’s commercial aircraft and services business, which would strategically align with Boeing’s commercial development, production, marketing, and lifecycle services operations. According to the terms of the agreement, Boeing will hold an 80 percent stake in the joint
venture, and Embraer will hold the remaining 20 percent stake.
“By forging this strategic partnership, we will be ideally positioned to generate significant value for the customers, employees, and shareholders of both companies – and for Brazil and the United States,” said Dennis Muilenburg, chairman, president, and CEO of Boeing.
“This important partnership clearly aligns with Boeing’s long-term strategy to invest in organic growth and return 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 the leadership of both companies in the global market,” said Paulo Cesar de Souza e Silva, CEO and president of Embraer. “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, thus adding more value for customers, shareholders, and employees.”
The strategic partnership will bring together more than 150 years of combined leadership in aerospace and leverage the highly complementary commercial product lines of both companies. The partnership is a natural evolution of a long history of collaboration between Boeing and Embraer over more than 20 years.