On Monday, Boeing announced its acquisition of the struggling supplier Spirit AeroSystems in a deal valued at US$4.7 billion, conducted entirely in stock. This agreement, finalized after extensive negotiations, comes as Boeing endeavors to address a significant safety and regulatory crisis impacting its primary supplier.
The total worth of the transaction amounts to approximately $8.3 billion, inclusive of Spirit’s latest reported net liabilities, according to Boeing. Each share of Spirit common stock is set to be swapped for a specific number of Boeing common stock shares, reflecting an exchange ratio ranging from 0.18 to 0.25. This arrangement culminates in an equity value of roughly $37.25 per share.
Regarding the merger, Boeing revealed that Airbus intends to acquire particular commercial work packages managed by Spirit for Airbus, following the successful completion of the Boeing-Spirit merger. Additionally, Spirit is considering the sale of specific operations, which encompass locations in Belfast, non-Airbus operations in Northern Ireland, Prestwick in Scotland, and Subang in Malaysia.
The anticipated closure of the transaction is slated for the middle of 2025.
This agreement between Boeing and Airbus marks a facet of a broader understanding between the two prominent global commercial aircraft manufacturers to segregate Spirit facilities. As a former subsidiary of Boeing, Spirit AeroSystems also serves Airbus, which harbors reservations about Boeing’s involvement in producing critical components for its aircraft.
