Boeing to buy Spirit Aero in $4.7 bln deal after months of talks
The Spirit deal is part of a broader framework between Boeing and its European rival, Airbus, the two dominant global commercial plane manufacturers, to separate Spirit facilities
![Boeing's reputation, already tarnished, faces an uphill battle in restoring trust among airlines, regulators, and passengers amidst each new incident and negative publicity. Photo: Collected](https://www.tbsnews.net/sites/default/files/styles/big_2/public/images/2024/03/14/e4lxpihucaapyzx.jpg)
Boeing said on Monday it would buy its struggling supplier Spirit AeroSystems in a $4.7 billion all-stock deal which was finalised after months of talks, as the aerospace giant tries to solve a full-blown safety and regulatory crisis that has engulfed its key supplier as well.
The total transaction value is about $8.3 billion, including Spirit's last reported net debt, Boeing said.
The company added that each share of Spirit common stock will be exchanged for a number of shares of Boeing common stock equal to an exchange ratio between 0.18 and 0.25, resulting in an equity value of about $37.25 per share.
Boeing said that Airbus will acquire certain commercial work packages that Spirit performs for Airbus with the closing of the Boeing-Spirit merger.
Boeing also said that Spirit is proposing to sell certain of its operations, including those in Belfast, non-Airbus operations in Northern Ireland, Prestwick, Scotland, and Subang, Malaysia.
The transaction is expected to close mid-2025.
The Spirit deal is part of a broader framework between Boeing and its European rival, Airbus, the two dominant global commercial plane manufacturers, to separate Spirit facilities.
The one-time Boeing subsidiary also supplies Airbus, which does not want Boeing making key parts for its aircraft.