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 tries to resolve a full-blown regulatory and safety crisis that has also engulfed its key supplier.
The total value of the transaction is about $8.3 billion, including Spirit’s latest reported net debt, Boeing said.
The company added that each Spirit common share will be exchanged for a number of Boeing common shares equal to an exchange ratio between 0.18 and 0.25, resulting in an equity value of approximately $37.25 per share. .
Boeing said Airbus will acquire certain commercial work packages that Spirit performs for Airbus with the closing of the Boeing-Spirit merger.
Boeing also said Spirit proposes 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 framework between Boeing and its European rival Airbus, the world’s two dominant commercial aircraft makers, to separate Spirit’s facilities.
The former Boeing subsidiary also supplies Airbus, which does not want Boeing to make 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)