Boeing is set to take subcontractor Spirit back into its fold, stepping away from its longtime strategy of outsourcing key parts of its passenger airplanes.
Aircraft manufacturer giant Boeing has announced plans to acquire Spirit AeroSystems for $4.7 billion in an all-stock transaction for the firm, which was already part of Boeing’s manufacturing chain.
The acquisition is worth $4.7 billion, at $37.25 per share. The total deal, however, is for $8.3 billion, which includes the subcontractor’s debt, Boeing said in a statement late Sunday.
“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” Boeing President and CEO Dave Calhoun said in the statement.
Spirit was owned by Boeing until 2005, when it was sold off in a bid to reduce costs. With this deal, Boeing will begin to move away from its strategy of outsourcing key parts of its passenger planes.
Centering ‘safety and quality’
Boeing is by far Spirit’s biggest client, with around 70% of its revenue coming from the American plane maker in 2023. The two companies have faced intense scrutiny since a near-catastrophic incident in January, when a fuselage panel blew off a 737 MAX mid-flight.
“By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes — centered on safety and quality,” Calhoun said.
Separately, European aerospace giant Airbus also announced that it would buy “major activities related to Airbus” from subcontractor Spirit AeroSystems.
The group said this includes production sites related to the A350 in North Carolina and France, as well as the production of the A220 parts in Belfast, Casablanca in Morocco and in Kansas, US.
