ADM Aéroports de Montréal (ADM) has agreed to acquire Lion Electric’s innovation centre facility at Mirabel International Airport for $50 million.

The 193,000-square-foot building in Mirabel, Que., will serve as the cornerstone for the development of Espace Aéro, Quebec’s aerospace innovation zone, at YMX International Aerocity of Mirabel, said ADM.

The acquisition marks a significant step forward in the creation of Espace Aéro, a project first announced by the Quebec government in May, added ADM, which is the Greater Montreal Area’s airport authority. The innovation zone aims to foster collaboration among manufacturers, institutional and government partners, academic institutions, and researchers, with a focus on advancing aviation decarbonization and developing new air-mobility technologies.

“ADM already had plans to construct a building at YMX to house the Espace Aéro innovation centre. This business opportunity comes at just the right time and will help move this project forward even faster,” said Yves Beauchamp, ADM’s president and CEO, in a news release. “In addition to its strategic location on our site, this building meets all our criteria for carrying out the hub’s activities and thus promoting the development and commercialization of new technologies.”

Lion Electric, a leading manufacturer of all-electric medium- and heavy-duty urban vehicles, will use the proceeds to partially repay its senior secured non-convertible debentures issued in July 2023, the Saint-Jerome, Que.-based company said in a separate news release. While the transaction is expected to reduce Lion’s long-term debt, the financially troubled company stated it will not affect its short-term liquidity or cash position.

The initiative underscores Quebec’s commitment to innovation in sustainable aviation technologies and positions the Mirabel hub as a key player in the global aerospace ecosystem, said ADM.

The transaction is expected to close before the end of 2024, pending the satisfaction of customary conditions.

Photo: Lion Electric