Boeing takes 80% control of Brazil aircraft maker Embraer

July 5 (UPI) -- Boeing said Thursday it will take control of Brazil-based airplane manufacturer Embraer, expanding its reach into the industry for smaller jets.

The companies agreed to a partnership to align their commercial aircraft and services businesses to "accelerate growth in global aerospace markets."

The venture gives Boeing 80 percent ownership in Embraer, a stake valued at $3.8 billion.

Embraer CEO Paulo Cesar de Souza e Silva called the deal "the most important strategic partnership in the aerospace industry."

The deal is expected to add to Boeing's earnings per share in 2020. It could offer a commercial portfolio that ranges from 70 seats to more than 450, plus freighter aircraft. Boeing has a backlog of jets worth about $400 billion.

Additionally, the companies will create another agreement to market new applications for defense products and services, including the KC-390 multi-mission aircraft, Boeing said.

Shares of Embraer dropped more than 5 percent in early Thursday trading, while shares of Boeing rose slightly.