Boeing and Airbus to split up struggling supplier Spirit AeroSystems

Boeing has announced a definitive agreement to acquire Spirit AeroSystems in an all-stock transaction valued at approximately $4.7 billion, or $37.25 per share. Including Spirit’s net debt, the total transaction value reaches approximately $8.3 billion. 

“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 – centered on safety and quality,” Boeing CEO Dave Calhoun emphasized. 

The acquisition encompasses nearly all Boeing-related commercial operations at Spirit, as well as additional commercial, defense, and aftermarket operations. Boeing will collaborate with Spirit to ensure the continuity of its operations, especially those supporting defense customers. 

Boeing subcontracted certain manufacturing operations in 2005, aiming to lower expenses and enhance production effectiveness. The sale of Boeing’s Wichita division led to the establishment of Spirit AeroSystems, which constructed the fuselages of the 737 and 787. 

The purchase of Spirit AeroSystems was considered following an event in January 2024 when an Alaska Airlines Boeing 737 MAX 9 experienced a mid-cabin door plug loss. Boeing has faced other problems in the past few years, including the repercussions of the deadly crashes involving its aircraft in 2018 and 2019. Amid ongoing safety and quality issues, Calhoun has announced that he will leave by the end of 2024. 

Boeing CEO search ongoing as talks with Spirit boss on hold and GE head declines

AircraftbyIan Molyneaux2024-06-18

Airbus to acquire Spirit AeroSystems’ Airbus-related operations 

In related news, Airbus has entered a binding term sheet agreement with Spirit AeroSystems to acquire several of Spirit’s Airbus-related operations for $559 million.  

Spirit plans to sell certain Airbus-related operations and facilities in Belfast, Northern Ireland, Prestwick, Scotland, and Subang, Malaysia. The activities include the production of A350 fuselage sections and A220 wings, mid-fuselage, and pylons. 

“With this agreement, Airbus aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially, for the various Airbus work packages that Spirit AeroSystems is responsible for today,” the European manufacturer said in a statement. 

The transaction is expected to close by mid-2025, pending approval from regulators and Spirit shareholders. The post Boeing and Airbus to split up struggling supplier Spirit AeroSystems appeared first on AeroTime.

Go to Source