Boeing announced on Monday its acquisition of struggling supplier Spirit AeroSystems in a USD 4.7 billion all-stock deal, marking the conclusion of extensive negotiations. This move comes as Boeing navigates a significant safety and regulatory crisis affecting its crucial supplier. Including Spirit’s net debt, the total transaction value amounts to approximately USD 8.3 billion, according to Boeing.
Under the terms of the deal, each share of Spirit common stock will be converted into Boeing common stock based on an exchange ratio ranging between 0.18 and 0.25. This translates to an equity value of around USD 37.25 per share.
Boeing disclosed that as part of the merger, Airbus will take over specific commercial work packages currently handled by Spirit for Airbus. Additionally, Spirit plans to divest certain operations, including facilities in Belfast, non-Airbus operations in Northern Ireland, Prestwick in Scotland, and Subang in Malaysia. The transaction is slated to be completed by mid-2025.
The acquisition of Spirit represents a broader strategic initiative between Boeing and Airbus to segregate Spirit’s facilities. Notably, Spirit, once a Boeing subsidiary, also supplies Airbus, which seeks to avoid reliance on Boeing for critical aircraft components.
Boeing’s acquisition of Spirit AeroSystems, finalised after months of negotiation, underscores its strategic response to a severe crisis impacting its supplier. The USD 4.7 billion all-stock transaction, totaling approximately USD 8.3 billion including debt, aims to stabilise operations amidst ongoing safety and regulatory challenges.
The deal structure involves Spirit shareholders exchanging their shares for Boeing stock, valued at around USD 37.25 per Spirit share based on the agreed exchange ratio. Boeing also revealed that Airbus will assume responsibility for specific commercial work packages currently managed by Spirit for Airbus, aligning with broader efforts to streamline operations.
As part of the merger, Spirit intends to sell off several operations, including facilities in Belfast, Northern Ireland, Prestwick in Scotland, and Subang in Malaysia. This strategic divestiture is expected to conclude by mid-2025.
The transaction marks a significant development in the competitive landscape between Boeing and Airbus, the world’s leading commercial aircraft manufacturers. It highlights Airbus’s strategy to reduce dependency on Boeing by integrating key parts suppliers into its network, reshaping the dynamics of global aerospace supply chains.