Boeing to acquire Fuselage Maker Spirit Aerosystems for $4.7 billion

Washington:

U.S. aircraft maker Boeing said on Monday it had reached a “definitive agreement” to buy its subcontractor Spirit, which has faced scrutiny over production quality control in recent months.

“The merger is an all-stock transaction with an equity value of approximately $4.7 billion, or $37.25 per share,” the company said in a statement.

Boeing disclosed in March that it was in talks to potentially reacquire Spirit, which it spun off in 2005 to cut costs.

“We believe this agreement is in the best interests of the flying public, our airline customers, Spirit and Boeing employees, our shareholders and the country more broadly,” said Boeing President and CEO Dave Calhoun.

He said that by reintegrating Spirit, “we can fully align our commercial production systems,” including safety and quality management systems, and “our workforce with the same priorities, incentives and outcomes – centered on safety and quality.” .

Spirit AeroSystems builds fuselages and other important parts for Airbus and Boeing.

Boeing is by far Spirit’s biggest customer, with about 70% of its revenue coming from the American plane maker in 2023.

The two companies have faced intense scrutiny since a near-catastrophic incident in January, when a fuselage panel exploded on a 737 MAX mid-flight.

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