Boeing acquires major supplier in $4.7 billion all-stock deal
In a significant deal finalized after months of negotiations, aviation giant Boeing has agreed to acquire Spirit AeroSystems, one of its major suppliers, in an all-stock transaction valued at $4.7 billion. The total value of the deal, including debt, stands at $8.3 billion.
As per the terms, shareholders of Spirit AeroSystems will receive between 0.18 and 0.25 Boeing shares for each of their shares. This translates to an equity value of approximately $37.25 per Spirit share. The acquisition is expected to close by mid-2025, subject to regulatory approvals.
The deal aims to resolve ongoing issues faced by Boeing and its supply chain following multiple setbacks in recent years. Spirit AeroSystems will continue manufacturing key components for Boeing's commercial aircraft while gaining access to a more stable long-term order book.
Meanwhile, Airbus has also announced plans to take over certain Spirit operations that support its programs. The European aerospace major will receive $559 million in compensation from Spirit for acquiring plants manufacturing strategic parts for its A350 and A220 aircraft.
With this mutually beneficial transaction, the two aviation leaders aim to stabilize production and ensure business continuity for themselves as well as smaller suppliers. The integration of Spirit is expected to help Boeing optimize costs and boost efficiency across its vast network.
