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Boeing Acquires Spirit AeroSystems for $4.7 Billion in All-Stock Deal
Arlington, Va. – Aerospace giant Boeing has revealed a strategic move to acquire Spirit AeroSystems in an all-stock transaction valued at $4.7 billion. Spirit AeroSystems, based in Wichita, Kansas, is a key supplier of parts for Boeing aircraft. The acquisition’s equity value is $37.25 per share. Including Spirit’s debt, the deal’s total value reaches $8.3 billion.
Boeing made the announcement in a statement released late Sunday. The company expects the acquisition to improve plane quality and safety. Boeing aims to streamline its production process by bringing Spirit AeroSystems back into the fold.
Boeing has announced the acquisition of Spirit AeroSystems for $4.7 billion in an all-stock transaction. Spirit, based in Wichita, Kansas, is a key supplier of parts for Boeing aircraft. The acquisition is expected to improve plane quality and safety, as Boeing will once again have full control over its manufacturing process.
This acquisition represents a strategic shift for Boeing, as it moves away from its previous approach of relying on external suppliers for critical manufacturing components. The company hopes that by bringing Spirit back into the fold, it can address recent production disruptions and safety concerns. Notably, Spirit was involved in the production of the 737 Max, which was grounded after two fatal crashes.
Boeing CEO Dave Calhoun emphasised the benefits of the deal for all stakeholders, including the flying public, airline customers, employees, and shareholders. He also highlighted the potential for improved safety and quality by aligning Boeing’s and Spirit’s production systems.
The acquisition comes at a time of increased scrutiny for Boeing, particularly in the wake of the 737 Max crashes. The Department of Justice is currently pushing for Boeing to plead guilty to criminal fraud in connection with the crashes.
By acquiring Spirit, Boeing aims to regain control over its supply chain and address the challenges that have plagued the company in recent years. The transaction is anticipated to be finalised pending regulatory clearance, with completion expected in the first half of 2024.
