Boeing will acquire Spirit AeroSystems in a USD8.3 billion deal that the aircraft manufacturer says demonstrates its safety commitment, improves aircraft quality, supports supply chain and critical workforce stability, and provides long-term value for commercial customers, employees, and shareholders.
"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,” said Boeing President and CEO Dave Calhoun. “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.”
The merger is an all-stock transaction with an equity value of approximately USD4.7 billion, or USD37.25 per share. The total transaction value includes Spirit's last reported debt. Each share of Spirit common stock will be exchanged for shares of Boeing common stock. The acquisition will include most of Spirit's Boeing-related commercial operations, as well as additional commercial, defence, and aftermarket operations.
"This is an opportunity to bring back critical aircraft manufacturing work on Boeing aircraft into our factories," Calhoun told Boeing employees. "Among the many actions we’re taking as a company, this is one of the most significant in demonstrating our unwavering commitment to strengthen quality and make certain that Boeing is the company the world needs it to be."
Boeing had previously confirmed that it was in talks to buy the Kansas-based Spirit AeroSystems, which make the fuselages for the B737 and other parts, including sections of the B787. Boeing accounts for around 70% of Spirit's revenue, and Airbus around 25%. Both Boeing and Spirit have experienced prolonged quality control issues, most recently highlighted when a door plug on an Alaska Airlines (AS, Seattle Tacoma International) B737-9 blew out inflight earlier this year.
Separately, Airbus and Spirit have also entered into a binding term sheet under which the aircraft manufacturer will acquire (pending definitive agreements and receipt of any required regulatory approvals) specific commercial work packages that Spirit performs for Airbus when the Boeing-Spirit merger closes, including operations in Belfast (where A220 wings and mid-fuselages are manufactured), in Kansas (where the A220 pylons are made), and in North Carolina (where A350 fuselage sections are machined). Airbus will receive USD559 million from Spirit AeroSystems to acquire these assembly lines.
Additionally, Spirit is proposing to sell certain of its operations, including non-Airbus operations in Belfast, Northern Ireland; Prestwick, Scotland; and Subang, Malaysia.
Subject to the sale of the Airbus commercial work packages and the satisfaction of customary closing conditions, including regulatory and Spirit shareholder approvals, the transaction with Boeing is expected to close in mid-2025.
