The Canadian government announced Monday the sale of two government-owned corporations, including de Havilland Aircraft of Canada Ltd. to Seattle-based Boeing Co.
Under terms of the agreement, Boeing will pay $155 million (Canadian), including a cash payment of $90 million and a deferred payment of $65 million.
Boeing said it also intends to make significant additional investments for ongoing product development and modernization of the de Havilland plant.
De Havilland designs and manufactures commuter turboprop aircraft such as the Twin Otter.
The 58-year-old company is located near Toronto and has 4,500 employees.
Robert de Cotret, president of the Canadian Treasury Board, reported the signing of a letter of intent under which Boeing will purchase the company, which has been owned by the Canadian government since 1974. De Cotret serves as chairman of the government's Privatization Task Force.
According to a release from Boeing, de Havilland of Canada will have responsibility for designing and manufacturing all Boeing commuter aircraft products.
The government of Canada also announced that Canadian Arsenals, the Quebec-based producer of large-caliber ammunition for the military, will be acquired by SNC Group of Montreal, Canada's biggest engineering firm.
SNC Group has offered $92.2 million for Canadian Arsenals, which does about 90% of its business with the government.