Boeing Reaches Agreement to Acquire Spirit AeroSystems for $4.7 Billion: Report
By Trisha Andrada
Jul 01, 2024 03:17 AM EDT
Jul 01, 2024 03:17 AM EDT
According to two sources familiar with the situation, Boeing finally reached an agreement to buy Spirit AeroSystems for over $4 billion after months of negotiations. The aircraft maker hopes the deal will allay the mounting security fears voiced by American authorities.
The deal was decided after the boards of directors of both Boeing and Spirit met on Sunday, June 30. A formal announcement is expected early on Monday, July 1.
The two insiders who talked to Reuters indicated that Boeing would acquire Spirit Aero for $37.25 per share in an all-stock agreement. Among the sources, one estimates that Spirit is worth around $4.7 billion after its acquisition.
Assuming all necessary regulatory clearances are met, the deal would dissolve Spirit, with some of its assets going to the French aircraft manufacturer Airbus.
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Boeing has been struggling to recover from a string of setbacks that began with a mid-air door plug blowout earlier this year, which revealed several quality and safety issues in its 737 MAX 9 planes. Production at Boeing has slowed significantly due to these problems, which has affected the commercial aviation sector worldwide.
Spirit, which manufactured the door plug, was split out from Boeing in 2005 as part of a series of actions that critics claim indicated a focus on decreasing costs rather than maintaining high quality.
To rectify its safety issues and strengthen its manufacturing line, Boeing decided to repurchase Spirit.
READ MORE: Boeing Faces New Safety Probe Due to Missing Paperwork That Caused Alaska Air Accident
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