Boeing and Spirit AeroSystems have reached an agreement for Boeing to acquire the Wichita-based aerostructures supplier. The deal, valued at $4.7 billion, will see Boeing purchase Spirit for $37.25 per share in an all-stock transaction.
The boards of both companies met on June 30, 2024, to finalize the terms of the deal, which is expected to be publicly disclosed on July 1, 2024. Spirit’s stock closed at approximately $32.80 per share on the preceding Friday. Neither Boeing nor Spirit responded to requests for comment about the acquisition.
Boeing previously owned Spirit Aerosystems before spinning off the operation in 2005. The acquisition terms reportedly involve splitting up Spirit’s operations, a move seen as necessary for Boeing to take over the supplier. Airbus is set to take over some of Spirit’s operations.
Impact on Spirit’s Operations
Spirit’s Airbus business includes several key facilities: a site in Kinston, North Carolina, that produces A350 center-fuselage sections; a facility in Belfast, Northern Ireland, that makes A220 wings; and additional facilities in Prestwick, UK, and Saint-Nazaire, France.
In March, Boeing revealed its consideration of acquiring Spirit Aerosystems as a strategy to address the supplier’s numerous production issues. This move follows intense criticism and scrutiny after a 737 Max 9’s mid-cabin door plug blew out during a flight on January 5, 2024. Boeing stated that its workers failed to properly secure the plug, but a defect involving rivets in Spirit-made fuselage sections also contributed to the incident.
Boeing aims to streamline its production processes and mitigate the risks associated with supplier-related production issues by acquiring Spirit Aerosystems. The acquisition is expected to help Boeing better manage and oversee the production quality of crucial aerostructure components.
Source: FlightGlobal
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