ARLINGTON, Va. (AP) — Boeing announced plans to acquire Spirit AeroSystems for $4.7 billion in an all-stock deal for the manufacturing company, which was already part of the manufacturing chain of the aerospace company.
Boeinglocated in Arlington, Virginia, announced the purchase in a statement Sunday evening.
The net value of the $4.7 billion acquisition is $37.25 per share, while the total deal value is about $8.3 billion, which includes Spirit’s most recently reported net debt, the aerospace company said.
Spirit, located in Wichita, Kansas, manufactures key parts for Boeing aircraft. Spirit also announced the acquisition on its website and social media channels.
“We believe this agreement is in the best interest of travelers, our airline customers, Spirit and Boeing employees, our shareholders and the country as a whole,” Boeing Chairman and CEO Dave Calhoun said in the statement.
Boeing previously owned Spirit, and the aerospace company said bringing the supplier back into the Boeing fold would improve the quality and safety of the planes, which have come under increasing scrutiny from regulators, Congress and airlines.
“By reintegrating Spirit, we can fully align our commercial production systems, including our safety and quality management systems, and our workforce with the same priorities, incentives and results, focused on safety and quality,” Calhoun said.
Buying Spirit would reverse a long-standing Boeing strategy of outsourcing key tasks on its jetliners. This approach has been criticized as problematic at Spirit production disrupted and the delivery of popular Boeing airliners, including the 737 and 787.
Safety concerns The situation came to a head after a January 5 panel explosion on an Alaska 737 Max 9 16,000 feet (4,876 meters) above Oregon. The Federal Aviation Administration announced shortly after increased surveillance from Boeing and Spirit.
The Justice Department said in a Court filing in May that Boeing violated the terms of a 2021 settlement allowing the company to avoid prosecution for actions that led to two fatal accidents involving the company’s 737 Max airliners more than five years ago.
The Ministry of Justice is push Boeing to plead guilty to criminal fraud in connection with two fatal plane crashes involving its 737 Max airliners, according to multiple people who heard federal prosecutors detail a proposed deal Sunday.
Boeing has until the end of the week to accept or reject the offer, which includes the aerospace giant’s acceptance of an independent observer who would oversee its conformity with anti-fraud laws, they said.
