Boeing buys Spirit AeroSystems for $4.7b

Boeing announced on Monday it will buy Spirit AeroSystems in an all-stock deal valued at $4.7 billion, totalling $8.3 billion with debt.

Spirit shareholders will receive 0.18 to 0.25 Boeing shares per Spirit share, equating to approximately $37.25. Notably, Spirit’s shares closed at $32.87 on Friday.

Airbus, another Spirit customer, will take over core activities at four of Spirit’s plants in the US, Northern Ireland, France, and Morocco, and some minor operations in Wichita, Kansas.

This move follows Boeing’s decision to repurchase its former subsidiary. Airbus, which had sought up to $1 billion in compensation for the unprofitable plants, will receive $559 million and pay $1 for the assets.

Spirit also plans to sell operations in Prestwick, Scotland, and Subang, Malaysia, as well as non-Airbus-related operations in Belfast, Northern Ireland. The Boeing-Spirit deal is expected to close by mid-2025.

Attribution: Reuters.