Boeing announces purchase of Spirit AeroSystems
Boeing agreed to buy back Spirit AeroSystems for $4.7 billion in stock and Airbus moved to take on the supplier’s Europe-focused activities in return for hundreds of millions of dollars of compensation following months of talks.
Boeing said the transaction is valued at approximately $37.25 per share. The total value of the transaction is approximately $8.3 billion, including Spirit’s last reported net debt.
“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,” said Boeing President and CEO Dave Calhoun. “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.”
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Boeing’s acquisition of Spirit will include substantially all Boeing-related business operations, as well as additional defense and aftermarket operations.
For its part, Airbus has entered into a binding term sheet agreement with Spirit AeroSystems in relation to a potential acquisition of major activities related to Airbus, notably the production of A350 fuselage sections in Kinston, North Carolina, U.S., and St. Nazaire, France; of the A220’s wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco; as well as of the A220 pylons in Wichita, Kansas, U.S.
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 transaction would cover the acquisition of these activities. Airbus will be compensated by payment of $559 million from Spirit AeroSystems, for a nominal consideration of $1.00, subject to adjustments including based on the final transaction perimeter.
The signing of definitive agreements remains subject to subsequent due diligence, such as Spirit’s regulatory and shareholder approvals.
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