The American aircraft manufacturer is offering nearly $5 billion to absorb its subcontractor, which it created in 2005. Its European competitor will also take over part of the company.
After a series of production problems on Boeing planes, the American aircraft manufacturer will buy its subcontractor Spirit AeroSystems for nearly $5 billion, it announced on Monday, July 1. The transaction would be made entirely in shares, at a price of $37.25 per share, valuing the company at $4.7 billion, according to the Bloomberg agency, which cites sources close to the deal. Boeing would also consider taking over about $3.5 billion of Spirit’s debt as part of the agreement, these sources said.
The two companies confirmed preliminary discussions in early March with a view to this remarriage. Spirit AeroSystems, created in 2005 by Boeing, emerged from several of its activities grouped into an independent company. Boeing is by far Spirit’s largest customer, 60% of whose revenues came from the American aircraft manufacturer in 2022. Spirit AeroSystems supplies it with fuselages in particular.
The company also works with European competitor Airbus, supplying it with wing elements and other parts. The European aircraft manufacturer will therefore also take over from Spirit AeroSystems certain activities essential to several of its programs. “Airbus has entered into a binding agreement with Spirit AeroSystems for the potential acquisition of major Airbus-related businesses” said the European aircraft manufacturer, which will be “compensated by Spirit AeroSystems to the tune of $559 million, for a nominal consideration of $1.00 subject to adjustments, in particular depending on the final scope of the transaction” .
“Non-compliance issues”
Spirit AeroSystems has been under surveillance since an incident on January 5, when a cabin door of an Alaska Airlines Boeing 737 MAX 9 came loose in mid-flight. On March 4, the United States Aviation Agency (FAA) indicated that “non-compliance issues” had been spotted in the production control of Boeing and Spirit Aerosystems.
The manufacturer also reported, throughout 2023, production problems, some of which affected the fuselage, which reduced its production rate and deliveries. Asked at the end of January on CNBC to know if he considered, in hindsight, that the split had been ill-advised, Boeing CEO Dave Calhoun admitted that the group had “probably” been too far.
