Boeing Co. has reached an agreement to reacquire major supplier Spirit AeroSystems Holdings Inc. at a valuation of $4.7 billion through an all-stock transaction. The deal, which prices Spirit Aero’s shares at $37.25 apiece, aims to address ongoing manufacturing challenges within the aerospace giant.
The total value of the transaction, factoring in Spirit’s last reported net debt, sums up to approximately $8.3 billion. Concurrently, European aerospace behemoth Airbus SE is set to acquire select components operations from Spirit that are involved in constructing parts for its aircraft. Airbus will pay a nominal fee of $1 for these assets while also receiving $559 million in compensation, aligning with the strategic interests of both corporations.
This move will effectively reverse a split that occurred two decades ago, reintegrating a key supplier back into Boeing’s operations. The intent is to stabilize production quality and streamline operations during a period where the company is remedying various manufacturing defects.
The official announcement is anticipated to occur soon, with expectations pointing towards Monday. For further information, you can read more on the Bloomberg Industry Group’s website.