Boeing acquires Spirit AeroSystems for $4.7 billion

Boeing's reputation has suffered due to quality issues and safety concerns, notably around the Boeing 737 MAX which was involved in two fatal crashes in 2018 and 2019, leading to a global grounding. Recently, an Alaska Airlines Boeing 737 MAX 9 experienced a mid-air separation of an emergency door plug prompting a new NTSB investigation.

Spirit AeroSystems is one of the largest manufacturers of aerostructures for commercial airplanes and produces several key components for Boeing, including 737 MAX fuselages. “Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities,” said Spirit president and CEO Patrick M. Shanahan.

The acquisition will include most of Wichita-based Spirit’s commercial operations related to Boeing as well as additional commercial, defense, and aftermarket operations. Boeing plans to work with Spirit to ensure continuity for its customers and programs acquired from Spirit.

Airbus has entered into a binding term sheet agreement with Spirit aiming to acquire major activities related to Airbus' programs. This includes A350 fuselage sections produced in Kinston, North Carolina; St. Nazaire, France; A220 wings and mid-fuselage manufactured in Belfast; Casablanca, Morocco; as well as A220 pylons in Wichita.

“With this agreement, Airbus aims to ensure stability of supply for its commercial aircraft programs through a more sustainable way forward,” Airbus stated. The finalization of these agreements is subject to due diligence but includes compensation from Spirit AeroSystems amounting to $559 million for nominal consideration of $1.00 subject to adjustments based on the final transaction perimeter.

Spirit highlighted that the offer price represents a 30% premium over its closing stock price on February 29, 2024 – before discussions about potential transactions were publicly confirmed – resulting in an equity value around $4.7 billion and an enterprise value near $8.3 billion considering net debt.

“After carefully evaluating Boeing’s offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders,” concluded Shanahan.