Boeing Inks $4.7 Billion Stock Deal to Split Up Spirit Aero
Money | July 1, 2024, 9:04 a.m.
Boeing has agreed to buy back Spirit AeroSystems for $4.7 billion in stock, while Airbus is set to take over the supplier's Europe-focused activities, marking a rare transatlantic break-up that boosted shares for all three companies. Spirit, the largest standalone aerostructures company, saw its independence end after the latest Boeing 737 MAX crisis raised doubts about fuselage manufacturing resilience. The deal, at $37.25 per share, will allow for greater integration of manufacturing and engineering capabilities between Boeing and Spirit. The move comes as Boeing addresses quality problems and production issues, ultimately aiming to resolve a broader corporate and industrial crisis. Meanwhile, Airbus will take over core activities at Spirit's plants in the United States, Northern Ireland, France, and Morocco. The coordinated deals are expected to benefit both Boeing and Airbus, with Airbus receiving $559 million in compensation from Spirit.