Boeing has entered into an agreement to acquire its supplier Spirit AeroSystems, in a US$4.7 billion stock deal. The acquisition will include all of Boeing’s commercial operations, as well as additional commercial, defence and aftermarket operations.
The total transaction is valued at $8.3 billion, which includes Spirit’s last reported net debt. Each Spirit share will be exchanged for shares of Boeing stock at $37.25 per share. As part of the transaction, Boeing will work with Spirit to ensure the continuity of operations, supporting its customers and the programmes acquired, including working with the US Department of Defense and Spirit defence customers.
“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” said Boeing President and CEO Dave Calhoun.
“By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes – centred on safety and quality.”
Photo: PRNewsfoto/Boeing
Boeing spun off from Spirit in 2005 but has long debated acquiring the company back. This latest move from Boeing is part of its commitment to improve aviation safety and quality for its Commercial Airplanes arm.
The aeroplane manufacturer has faced intense scrutiny since the Alaska Airlines’ flight plug door incident on 5 January, most recently incurring sanctions from the NTSB for the release of non-public investigation information.
On this acquisition, Patrick M. Shanahan, President and Chief Executive Officer of Spirit, said: “Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems.”
The Boeing deal is expected to close in mid-2025 and is being performed concurrently with the closing of Airbus and Spirit’s agreement for the former to acquire certain parts of its A220 and A350 programmes’ work.
