Boeing to buy Spirit AeroSystems for $4.7 billion
06 Jul 2024
US aircraft manufacturer Boeing Company has agreed to acquire part of aerostructure maker Spirit AeroSystems, for about $4.7 billion, or about $37.25 per share, in an all-stock deal.
The total transaction, which values Spirt AeroSystems, including its net debt, at around $8.3 billion, will help Boeing address a spiralling safety crisis.
The boards of Boeing and Spirit have approved the terms of the merger agreement that would result in the breakup of Spirit, with some of the Kansas-based supplier's assets going to French planemaker Airbus.
Wichita, Kansas-based Spirit AeroSystems Holdings, Inc produces fuselage sections for Boeing's 737 and 787 aircraft, as well as the flight deck sections for most Boeing airliners.
The deal, which is subject to regulatory approvals, is part of Boeing’s efforts to address the safety issues connected with the mid-air blowout of door plug on a new 737 MAX 9 jet.
Those incidents have exposed safety and quality problems associated with the global commercial aviation industry.
Spirit, which was originally part of Boeing, was spun off in 2005 as part of the plane maker’s attempt at cost-cutting with a focus on quality.
Shareholders of Spirit AeroSystems will receive a number of Boeing common stock in an exchange ratio of 0.18 to 0.25, depending on the volume weighted average share price.
