The recent announcement of Boeing’s plan to acquire Spirit AeroSystems in a $4.7 billion all-stock deal has sent shockwaves throughout the industry. This strategic move comes after months of negotiations aimed at resolving the crisis that has affected both companies. Boeing highlighted that the total deal value, including debt, stands at approximately $8.3 billion. This acquisition is set to have a significant impact on the aerospace sector.
Spirit AeroSystems, a key supplier for Boeing, will undergo a major transition as part of this deal. The exchange of Spirit common stock for Boeing shares will result in an equity value of around $37.25 per share, significantly higher than the closing price of $32.87 on Friday. Additionally, Airbus, another customer of Spirit, will be taking over core activities at some of Spirit’s plants, further reshaping the dynamics of the aerospace industry.
As part of the agreement, Airbus will be acquiring key operations at several of Spirit’s plants, including those in the United States, Northern Ireland, France, and Morocco. This move by Airbus was triggered by Boeing’s decision to reclaim its former subsidiary, which has since expanded its business to include supplying Airbus and other manufacturers. The financial terms of this part of the deal involve Airbus receiving compensation from Spirit amounting to $559 million, while they pay a nominal $1 for the assets.
In light of the acquisition, Spirit AeroSystems has outlined plans to divest certain businesses and operations that support Airbus programs. This includes selling off operations in Prestwick, Scotland, and Subang, Malaysia, as well as non-Airbus related operations in Belfast, Northern Ireland. These strategic moves are designed to streamline operations and focus on core business activities going forward.
Timeline for the Deal
Boeing has indicated that the completion of the Spirit AeroSystems acquisition is expected by mid-2025. This timeline allows for necessary approvals and regulatory processes to take place, ensuring a smooth transition for both companies. The aerospace industry will be closely monitoring the developments of this deal and its implications for the market moving forward.