Boeing and Airbus to take on Spirit AeroSystems' operations
5th Jul 2024 | In News | By Michael Tyrrell
Boeing has announced it has entered into an agreement to acquire Spirit AeroSystems, while Airbus has agreed to acquire major activities related to its own aircraft programmes.
The merger is an all-stock transaction at an equity value of approximately $4.7bn. The total transaction value is approximately $8.3bn, including Spirit's last reported net debt.
"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," said Boeing president and CEO Dave Calhoun. "By reintegrating Spirit, we can fully align our commercial production systems, including our safety and quality management systems, and our workforce to the same priorities, incentives and outcomes – centred on safety and quality."
Boeing's acquisition of Spirit will include substantially all Boeing-related commercial operations, as well as additional commercial, defence and aftermarket operations. As part of the transaction, Boeing will work with Spirit to ensure the continuity of operations supporting Spirit's customers and programs it acquires, including working with the US Department of Defense and Spirit defence customers regarding defence and security missions.
Airbus has also entered into a binding term sheet agreement with Spirit in relation to a potential acquisition of major activities related to Airbus, notably the production of A350 fuselage sections in Kinston, North Carolina, US, and St Nazaire, France; of the A220’s wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco; as well as of the A220 pylons in Wichita, Kansas.
With this agreement, Airbus aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially, for the various Airbus work packages that Spirit AeroSystems is responsible for today.
In addition, Spirit is proposing to sell certain parts of its operations, including those in Belfast, Northern Ireland (non-Airbus operations), Prestwick, Scotland, and Subang, Malaysia. The transaction is expected to close mid-2025 and is subject to the sale of the Spirit operations related to certain Airbus commercial work packages and the satisfaction of customary closing conditions, including regulatory and Spirit shareholder approvals.
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