Boeing to acquire Spirit AeroSystems
Deal value at nearly $8.3 billion; to support supply chain stability and critical manufacturing workforce
Boeing has entered into a definitive agreement to acquire Spirit AeroSystems.
"The merger is an all-stock transaction at an equity value of approximately $4.7 billion, or $37.25 per share. The total transaction value is approximately $8.3 billion, including Spirit's last reported net debt," says an official release from Boeing.
Boeing's acquisition of Spirit will include substantially all Boeing-related commercial operations as well as additional commercial, defence and aftermarket operations, the release added. As part of the transaction, Boeing will work with Spirit to ensure the continuity of operations supporting Spirit's customers and programmes it acquires including working with the U.S. Department of Defense and Spirit defence customers regarding defence and security missions.
"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," says Dave Calhoun, President and CEO, Boeing. "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."
Patrick M. Shanahan, President and Chief Executive Officer, Spirit adds: “After carefully evaluating Boeing’s offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders, and will benefit Spirit’s other stakeholders. Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems.”
Airbus, Spirit sign agreement
Airbus has signed a binding term sheet agreement with Spirit for the potential acquisition of major activities related to Airbus - the production of A350 fuselage sections in Kinston, North Carolina, U.S., and St. Nazaire, France, of the A220’s wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco; as well as of the A220 pylons in Wichita, Kansas, U.S.
"Airbus will be compensated by payment of $559 million from Spirit, for a nominal consideration of $1, subject to adjustments including based on the final transaction perimeter," says a release from Airbus.
“We are proud of the part we have played in Airbus’ programmes and believe bringing these programs under Airbus ownership will enable greater integration and alignment," says Shanahan.
In addition, Spirit is also proposing to sell certain operations, including those in Belfast, Northern Ireland (non-Airbus operations), Prestwick, Scotland, and Subang, Malaysia, according to the release from Boeing.
The transaction is expected to close mid-2025 and is subject to the sale of the Spirit operations related to certain Airbus commercial work packages and the satisfaction of customary closing conditions, including regulatory and Spirit shareholder approvals, the release added.
