Boeing Makes $35-Per-Share Bid to Acquire Spirit AeroSystems: Report

By Trisha Andrada

Jun 26, 2024 03:34 AM EDT

Boeing has reportedly offered to buy out Spirit AeroSystems for about $35 per share, financed largely with stock.

A $35 per share price would be 6% over Spirit's stock price as of Monday's closing, June 24, indicating an equity value of $4.1 billion.

Switch of Plans

According to Bloomberg, citing anonymous sources, Boeing had been negotiating with Spirit for months about making an all-cash offer. However, this current proposal appears to be a switch of strategy.

After the Wall Street Journal reported that Boeing had decided to switch to an all-stock deal, a spokesperson chose not to comment yet mentioned that the firm continues to focus on providing the best quality products for its customers.

Those in the know stated that the cash-strapped planemaker should feel some relief from the strain caused by the shift in currency for spending. The details are still being worked out, but they said some cash could be involved.

In addition to requiring Spirit to sell off part of its production facilities to Airbus, Boeing's move to modify the payment conditions is only the most recent development in this complex deal. Although the change is not considered a deal-breaker, more research will be necessary because of it. According to the sources, the announcement of the three-way deal is still anticipated within the next several days.

Restoring Quality Control

Just last month, Boeing's Chief Financial Officer Brian West gave the impression that the firm was looking at all possible payment methods to keep its investment grade rating and cash on hand. The American aircraft manufacturer is under increasing financial constraints as it navigates a complex situation involving its cash-cow 737 Max airplane and ongoing government probes.

By acquiring Spirit, the old Wichita branch of Boeing, the troubled planemaker would regain control over the quality of its aircraft structures.