EMBRAER S.A. - MATERIAL FACT

Rhea-AI Summary

Embraer S.A. (NYSE: ERJ) announced the sale of its wholly-owned subsidiaries, Embraer Portugal Estruturas Metálicas S.A. and Embraer Portugal Estruturas em Compósitos S.A., to Aernnova Aerospace for US$ 172 million. This transaction is part of the company's strategy to optimize assets and improve profitability. It has been unanimously approved by the board and is expected to close in Q1 2022 after fulfilling certain conditions. The subsidiaries produce components for Embraer’s aircraft, and Aernnova will continue their operations post-sale.

Positive

• Sale of subsidiaries for US$ 172 million improves asset optimization.
• Transaction supports profitability improvement strategy.
• Aernnova will maintain production levels for Embraer's aircraft.

Negative

• None.

SÃO JOSE DOS CAMPOS, Brazil, Jan. 12, 2022 /PRNewswire/ -- Embraer S.A. (the "Company") (B3: EMBR3, NYSE: ERJ), in compliance with CVM Resolution 44/2021, informs its shareholders and the market that on January 11, 2022, the Company, through its subsidiary Embraer Portugal S.A., entered into a binding contract for the sale of all of the shares of its wholly-owned subsidiaries Embraer Portugal Estruturas Metálicas S.A. ("EEM") and Embraer Portugal Estruturas em Compósitos S.A. ("EEC") to Aernnova Aerospace, SAU, headquartered in Spain ("Aernnova"), for the reference price of US$ 172 million, subject to the usual adjustments for this type of transaction on the closing date (the "Transaction").

EEM and EEC are currently dedicated to supplying certain components used in the manufacture of aircraft by the Company and by Embraer Executive Aircraft, LLC. The Company hereby informs that, after the closing of the Transaction, Aernnova will undertake the operation of EEM's and EEC's industrial plants and will ensure the level of production and supply of such components for Embraer aircraft portfolio.

The Transaction, which has been unanimously approved by the Company's board of directors, is expected to close in the first quarter of 2022, following the fulfillment of certain conditions precedent.

The Transaction is an integral part of the Company's assets optimization which aims at maximizing facilities use and profitability improvement. In keeping with its strategy of innovation and growth, the Company will maintain its shareholders and the market duly informed about new material information relating to the transaction.

Antonio Carlos Garcia
Executive Vice-President, Finance &
Investor Relations 

 

View original content:https://www.prnewswire.com/news-releases/embraer-sa---material-fact-301459368.html

SOURCE Embraer S.A.

FAQ

What subsidiaries did Embraer sell to Aernnova Aerospace?

Embraer sold Embraer Portugal Estruturas Metálicas S.A. and Embraer Portugal Estruturas em Compósitos S.A.

What is the sale price of Embraer's subsidiaries?

The subsidiaries were sold for a reference price of US$ 172 million.

When is the transaction expected to close?

The transaction is expected to close in the first quarter of 2022.

What will happen to the subsidiaries after the sale?

Aernnova will operate the industrial plants and maintain component production for Embraer aircraft.

Is the sale of the subsidiaries approved by Embraer's board?

Yes, the transaction has been unanimously approved by the company's board of directors.