Boeing acquires Spirit AeroSystems for $4.7 Billion to boost aircraft safety - CILT(UK)
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LATEST NEWS

Boeing acquires Spirit AeroSystems for $4.7 Billion to boost aircraft safety

03 July 2024/Categories: Industry News, Active Travel & Travel Planning, Aviation, Logistics & Supply Chain, Operations Management


Aerospace company, Boeing, has announced an agreement to reacquire Spirit AeroSystems in an all-stock transaction equity value of $4.7 billion, or $37.25 per share.

The total transaction value is approximately $8.3 billion, including Spirit's last reported net debt.

Spirit AeroSystems was originally part of Boeing until 2005, Boeing sold its Wichita, Kansas, and Tulsa, Oklahoma facilities to the Onex Corporation who then established the independent aerostructure supplier.  

Boeing believe this deal will support supply chain stability and their critical manufacturing workforce, providing long-term value for commercial and defence customers, employees and shareholders.

Boeing said this will also leverage the company’s enterprise engineering and manufacturing capabilities.

In recent years Boeing has undergone scrutiny over safety concerns of its aircraft and their quality control process.

Boeing Grounded 171 Boeing 737 Max 9 aircraft since a cabin door broke off mid flight from Alaska to Oregon in January.

It was later discovered that this accident occurred as four bolts were missing from the cabin door panel, the National Transportation Safety Board (NTSB) revealed.

Whistleblowers have also put pressure on the company, speaking out over safety concerns.

Engineer Sam Salehpour told the BBC in April this year that he accused Boeing of taking “shortcuts” when constructing its 787 and 777 jets.

Boeing said these claims were inaccurate and the international plane-maker was confident that their aircraft were safe.  

According to Boeing, acquiring Spirit AeroSystems demonstrates their commitment to aviation safety and improving quality for Boeing Commercial Airplanes.  

Boeing President and CEO Dave Calhoun said: "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.

"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."  

Additionally, Airbus SE and Spirit have agreed on a binding term sheet for Airbus to acquire certain commercial work packages from Spirit, contingent on final agreements and regulatory approvals, to be completed alongside the Boeing-Spirit merger.

Spirit also plans to sell operations in Belfast (excluding Airbus work), Prestwick, and Subang, with the transaction expected to close by mid-2025, pending regulatory and shareholder approvals.

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