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Aerospace industry

Boeing to Acquire Spirit AeroSystems for $8.3 Billion in All-Stock Transaction

Strategic Insights

— 2 min read

Boeing, one of the world's largest aerospace companies, has announced plans to acquire Spirit AeroSystems, a leading manufacturer of commercial aircraft parts, for $8.3 billion in an all-stock transaction. The acquisition is set to reverse Boeing's longtime strategy of outsourcing key work on its passenger planes, which has been criticized for disrupting production and delivery of popular Boeing jetliners, including 737s and 787s. The deal aims to improve plane quality and safety, which has come under increasing scrutiny by regulators, Congress, and airlines.

Key Takeaways:

  • The acquisition's equity value is $4.7 billion, with a total value of around $8.3 billion, including Spirit's last reported net debt.
  • Spirit manufactures key parts for Boeing aircraft and is located in Wichita, Kansas.
  • Boeing President and CEO Dave Calhoun stated that the deal is in the best interest of the flying public, airline customers, employees of Spirit and Boeing, shareholders, and the country.
  • The acquisition will reverse Boeing's longtime strategy of outsourcing key work on its passenger planes.
  • The purchase is set to improve plane quality and safety, which has been under scrutiny by regulators, Congress, and airlines.
  • Boeing previously owned Spirit and aims to realign its commercial production systems, including Safety and Quality Management Systems, with Spirit.
  • The deal is seen as a significant move to rectify past production and delivery issues with Boeing's popular jetliners, including 737s and 787s.
  • Concerns about safety have been highlighted after a January 5 panel blowout on an Alaska 737 Max 9 at 16,000 feet, leading to increased oversight by the Federal Aviation Administration.
  • The Justice Department is pushing Boeing to plead guilty to criminal fraud in connection with two deadly plane crashes involving its 737 Max jetliners.

Statistics:

  • The total value of the acquisition is around $8.3 billion, including Spirit's last reported net debt.
  • The acquisition's equity value is $4.7 billion, with a share price of $37.25 per share.
  • Spirit manufactures key parts for Boeing aircraft and is located in Wichita, Kansas.
  • Boeing previously owned Spirit and aims to realign its commercial production systems, including Safety and Quality Management Systems, with Spirit.
  • The deal is set to rectify past production and delivery issues with Boeing's popular jetliners, including 737s and 787s.

Sources:

  • AP news wire
  • Boeing's statement
  • Spirit AeroSystems' website
  • Spirit AeroSystems' social media
  • Boeing President and CEO Dave Calhoun's statement
  • The Federal Aviation Administration's increased oversight of Boeing and Spirit
  • The Justice Department's court filing in May 2022
  • Federal prosecutors' proposed offer to Boeing

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