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Boeing to buy Spirit AeroSystems in $4.7 billion deal
Industry News- Jul 01,24
The acquisition is expected to be finalised by mid-2025.
Boeing has agreed to acquire Spirit AeroSystems in a deal worth $4.7 billion, marking the return of the aerospace supplier to Boeing's fold after a separation of two decades. The total transaction value, including Spirit’s net debt, amounts to approximately $8.3 billion, Boeing reported.
Spirit AeroSystems sealed the deal with Boeing following a separate agreement with Airbus, under which Airbus will take over certain portions of Spirit's work on its aircraft programs. This includes responsibilities for Airbus A220 and A350 programs at multiple global sites, such as in Northern Ireland, the US, France, and Morocco. Airbus will receive $559 million from Spirit as compensation for assuming these loss-making operations, acquiring the associated assets for a nominal $1.
In response, Spirit intends to divest some non-Airbus-related businesses, including operations in Belfast, Northern Ireland, as well as sites in Prestwick, Scotland, and Malaysia. Spirit, known for manufacturing the body of Boeing’s 737 Max jet, has faced scrutiny over production issues affecting the aircraft’s output. The company saw a change in leadership last year when former Boeing executive Patrick Shanahan took over as CEO.
Boeing, which spun off Spirit in 2005 while remaining its primary customer, aims to enhance manufacturing safety by reintegrating Spirit into its operations. This move is part of Boeing's strategy to align commercial production systems, safety protocols, and quality management under unified leadership.
The acquisition is expected to be finalised by mid-2025. Boeing is advised by PJT Partners, Goldman Sachs, and Consello, with legal counsel provided by Sullivan & Cromwell. Spirit is advised by Morgan Stanley and Moelis, with legal representation by Skadden.
(Source: Financial Times)
Boeing
aerospace
aviation
Spirit AeroSystems
Airbus
Patrick Shanahan
PJT Partners
Goldman Sachs
Consello
Sullivan & Cromwell
Morgan Stanley
Moelis
Skadden
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