Boeing agrees to acquire Spirit AeroSystem

( WJET/WFXP ) — Boeing announced on Monday that they have agreed to a definitive merger agreement to acquire Spirit AreoSystems.

“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. 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 – centered on safety and quality.”

Dave Calhoun | Boeing President and CEO

Boeing’s acquisition of Spirit will include substantially all Boeing-related commercial operations, as well as additional commercial, defense 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 U.S. Department of Defense and Spirit defense customers regarding defense and security missions.

Spirit’s Board of Directors unanimously approved the merger agreement.

The deal would value the supplier at $4.7 billion ($37.25 per share). However, this deal would still be subject to regulatory approvals. The total transaction value is approximately $8.3 billion, including Spirit’s last reported net debt .

The transaction is expected to close in mid-2025 and will be subject to the sale of the Spirit operations related to the Airbus commercial work as all as any additional regulatory approvals.

Spirit AreoSystems has also entered into a binding term sheet with Airbus SE where the two companies will, in good faith, negotiate definitive agreements for Airbus to acquire certain assets serving the current Airbus program. For Airbus, Spirit Aero currently produces the A350 fuselage, A22’s wings and mid-fuselage, and A220 pylons. As part of the deal, Spirit AreoSystems will compensate Airbus with a $559 million payment.

In addition, Spirit is proposing to sell certain of its operations, including those in Belfast, Northern Ireland (non-Airbus operations), Prestwick, Scotland, and Subang, Malaysia.

With this agreement, Airbus aims to ensure the stability of supply for its commercial aircraft programs through a more sustainable way forward, both operationally and financially, for the various Airbus work packages that Spirit AeroSystems is responsible for today.

After carefully evaluating Boeing’s offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders, and will benefit Spirit’s other stakeholders. Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems.”

Patrick M. Shanahan, President and Chief Executive Officer of Spirit AreoSystems

Spirit AreoSystems has been under intense pressure this year over their production of the 737 fuselage. A former employee, Joshua Dean, at Spirit Areo claimed that the company had allegedly failed “to conduct inspections resulting in faulty tail fin fittings being shipped to Boeing.”

The merger comes as The U.S. Justice Department is pushing Boeing to plead guilty to criminal fraud in connection with two deadly plane crashes involving its 737 Max jetliners, according to several people who heard federal prosecutors detail a proposed offer Sunday. This plea deal would allow Boeing to avoid a trial over the alleged conspiracy to defraud the United States. Boeing has until July 7 to either accept or reject the plea deal.

Under the proposed deal, the company must also agree to the appointment of an external corporate monitor, pay a fine of about $200 million and remain on probation for 3 years, according to the lawyers for the families.

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