Boeing has announced plans to acquire Spirit AeroSystems, a key supplier and former subsidiary, in an all-stock transaction valued at $4.7 billion, or $37.25 per share. The total deal value, including Spirit’s debt, amounts to approximately $8.3 billion. This strategic move comes as Boeing faces increasing scrutiny over safety issues and quality control, particularly following a series of incidents involving its 737 MAX aircraft.The acquisition aims to improve the integration of engineering and manufacturing capabilities, including safety and quality systems, between the two companies. Boeing CEO Dave Calhoun stated that the deal is ‘in the best interest of the flying public, our customers, Spirit and Boeing employees, our shareholders, and the country as a whole’.As part of the agreement, Airbus, Boeing’s European rival, will acquire certain Spirit AeroSystems facilities and operations. This includes the production of A350 fuselage sections in Kinston, North Carolina, and St. Nazaire, France; A220 wings and mid-fuselage sections in Belfast, Northern Ireland, and Casablanca, Morocco; and A220 pylons in Wichita, Kansas. Airbus will pay $559 million for these assets.In a significant development, sources close to the matter report that the US Department of Justice is planning to prosecute Boeing for fraud in connection with two fatal accidents involving its 737 MAX jetliners. The DoJ is reportedly offering Boeing a settlement that includes a financial penalty and the appointment of an independent monitor to oversee compliance with anti-fraud laws for three years. Boeing has until the end of the week to respond to this non-negotiable offer or face prosecution.The acquisition is expected to close by mid-2025, subject to regulatory approvals and other customary closing conditions. This deal marks a significant step in Boeing’s efforts to address ongoing safety concerns and improve its production processes in the wake of recent crises.
Key points
- Boeing is acquiring Spirit AeroSystems for $8.
- Airbus will acquire certain Spirit AeroSystems facilities for $559 million as part of the deal.
- The US Department of Justice is reportedly planning to prosecute Boeing for fraud related to two fatal 737 MAX accidents.
3 billion to improve safety and quality control.
