Boeing announced on Monday its plans to acquire the struggling fuselage maker Spirit AeroSystems in an all-stock deal aimed at improving safety and quality control within the company. The deal involves Boeing paying $37.25 per share in Boeing stock for Spirit, which translates to an equity value of $4.7 billion. Including Spirit’s debt, the total transaction value amounts to $8.3 billion.
The acquisition of Spirit AeroSystems is seen as a strategic move by Boeing, particularly in the aftermath of a fuselage panel blowout incident on a Boeing 737 Max 9 flight. By bringing Spirit in-house, Boeing aims to fully align the production systems and workforces of both companies, thereby enhancing the quality of its products and reinforcing its commitment to safety.
Spirit AeroSystems is a key supplier to Boeing, generating about 70% of its revenue from the planemaker. The acquisition is expected to streamline operations and improve efficiency by integrating Spirit’s manufacturing capabilities with Boeing’s production processes. This move is essential for Boeing to address the production issues that have plagued its planes, such as misdrilled holes and misconnected fuselage panels.
The deal is subject to approval by regulators, Spirit shareholders, and the sale of Spirit’s operations dedicated to Airbus planes. If successful, the acquisition is expected to close by mid-2025. Boeing CEO Dave Calhoun, who will step down at the end of the year, expressed confidence that the deal will strengthen Boeing’s quality standards and position the company as a global leader in the aerospace industry.
The acquisition of Spirit AeroSystems comes at a time when Boeing is facing financial challenges, with the company burning cash and its shares down more than 30% this year. The deal is seen as a strategic investment to improve Boeing’s financial performance and restore investor confidence. Analysts believe that the acquisition will benefit both companies in the long run, allowing them to capitalize on new growth opportunities and enhance their competitive position in the market.
The acquisition of Spirit AeroSystems by Boeing represents a significant milestone for both companies. This strategic move is expected to drive operational efficiencies, enhance product quality, and strengthen Boeing’s market position. With the deal set to close in the coming years, Boeing is poised to emerge as a stronger and more competitive player in the aerospace industry.