Boeing Acquires Spirit AeroSystems, a Leading Supplier in Longstanding Partnership
Money | July 1, 2024, 12:53 a.m.
Boeing announced its decision to acquire major supplier Spirit AeroSystems, bringing an end to a long-standing practice of outsourcing production of key components for its commercial planes. The move aims to address quality issues that have plagued Spirit in recent years, with Boeing now able to closely monitor and improve production practices by taking full ownership. This move comes after Boeing faced quality concerns following a panel incident on one of its planes earlier this year.
Boeing's CEO, Dave Calhoun, believes that by bringing Spirit in-house, the company can better align production and safety systems with its workforce. The $8.3 billion deal, including Spirit's debt, is expected to close by mid-next year pending regulatory and shareholder approval. Additionally, Boeing will be spinning off portions of Spirit to Airbus as part of the transaction. This strategic acquisition marks a significant shift in Boeing's manufacturing strategy.