Business

Boeing To Acquire Spirit Aerosystems For $4.7 Billion

Boeing announced on Monday that it has achieved a definitive agreement to acquire its subcontractor Spirit Aerosystems, which has recently faced scrutiny over production quality control.

In a statement, the company said, “The merger is an all-stock transaction at an equity value of approximately $4.7 billion, or $37.25 per share”.

Boeing announced in March that it was in talks to re-acquire Spirit, which it spun off in 2005 to reduce costs.

Dave Calhoun, Boeing president and CEO, stated, “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”.

Calhoun stated by reintegrating Spirit, “we can fully align our commercial production systems, including safety and quality management systems, and our workforce to the same priorities, incentives, and outcomes — centered on safety and quality”.

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Spirit AeroSystems manufactures fuselages and other major components for both Airbus and Boeing.

Boeing is Spirit’s biggest customer, accounting for over 70 percent of company sales in 2023.

The two firms have been under close investigation since a near-catastrophic incident in January when a fuselage panel blew off a 737 MAX mid-flight.

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Spriha Rai

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