Shankul Bhandare
Boeing has agreed to acquire Spirit AeroSystems in a deal valued at $4.7 billion after extensive negotiations that involved both Boeing and its European competitor, Airbus.
Including Spirit’s last reported net debt, the total transaction value is approximately $8.3 billion, according to Boeing. The deal, which values Spirit at around $37.25 per share, will reunite Spirit with Boeing after two decades of separation.
Spirit reached an agreement with Boeing after finalizing a separate deal with Airbus. Under this agreement, Airbus will take over certain Spirit operations related to key Airbus aircraft programs, including the A220 and A350, at multiple global sites such as Northern Ireland, the U.S., France, and Morocco.
Airbus will receive $559 million from Spirit for taking over these operations, paying a symbolic $1 for the assets involved.
Spirit also announced plans to divest some non-Airbus-related businesses, including operations in Belfast, Northern Ireland, Prestwick, Scotland, and Malaysia.
The aerospace supplier, known for manufacturing the fuselage of Boeing’s 737 Max jet, has faced scrutiny over production issues that have caused delays. Last year, Spirit’s CEO was replaced by former Boeing executive Patrick Shanahan.
Boeing has been negotiating with Spirit since March. Boeing had spun off Spirit in 2005 but remained its largest customer. Boeing stated that reacquiring the supplier would enhance safety in the manufacturing process.
This objective has been crucial for the Seattle-based company, especially following the mid-air incident involving a section of the main body of one of its 737 Max aircraft in January.
“By bringing Spirit back into the fold, we can fully synchronize our commercial production systems, including safety and quality management, and ensure our workforce is aligned with the same priorities, incentives, and outcomes—focused on safety and quality,” said Boeing CEO Dave Calhoun.
Boeing anticipates the deal will be finalized by mid-2025. The company is receiving advisory support from PJT Partners, Goldman Sachs, and Consello, with Sullivan & Cromwell serving as its legal counsel. Spirit AeroSystems is being advised by Morgan Stanley and Moelis, with Skadden as its legal counsel.
