-Boeing said Monday it would buy its troubled supplier Spirit AeroSystems in a $4.7 billion all-stock deal that was finalized after months of negotiations, as the aerospace giant attempts to resolve a real security and regulatory crisis that has engulfed its main supplier. Also.
The total value of the transaction is approximately $8.3 billion, including Spirit’s most recently reported net debt, Boeing said.
The company added that each share of Spirit common stock will be exchanged for a number of shares of Boeing common stock equal to an exchange ratio between 0.18 and 0.25, resulting in a net worth of approximately 37.25 $ per share.
Boeing said Airbus would acquire certain commercial work packages that Spirit performs for Airbus with the closing of the Boeing-Spirit merger.
Boeing also said Spirit was proposing to sell some of its operations, including Belfast, non-Airbus operations in Northern Ireland, Prestwick, Scotland, and Subang, Malaysia.
The transaction is expected to close in mid-2025.
The Spirit deal is part of a broader move by Boeing and its European rival, Airbus, the world’s two largest makers of commercial aircraft, to separate Spirit’s facilities.
The former Boeing subsidiary also supplies Airbus, which does not want Boeing to manufacture key parts for its planes.
(Reporting by Mike Stone and David Shepardson in Washington, Allison Lampert in Montreal and Shivansh Tiwary, Abhijith Ganapavaram and Shivani Tanna in Bengaluru; Editing by Arun Koyyur, David Gaffen and Matthew Lewis)
