Boeing has announced plans to acquire Spirit AeroSystems for $4.7 billion in an all-stock transaction. Spirit is part of the aerospace giant’s supply chain.
Boeing, based in Arlington, Virginia, announced the purchase in a statement late Sunday. Spirit is headquartered in Wichita, Kansas.
At about the same time, European aerospace giant Airbus said it had reached an agreement to buy “significant Airbus-related assets” from Spirit.
Under the intentions outlined in the announcements, Boeing would acquire most of Spirit’s operations.
Spirit builds fuselages and other key components for both Boeing and Airbus.
The Airbus agreement will take effect when Boeing’s acquisition of Spirit is completed, the two U.S. companies said.
The stock value of the $4.7 billion Boeing acquisition is $37.25 per share, while the total value of the deal is about $8.3 billion, including Spirit’s last reported net debt, Boeing said.
Airbus said it would be “compensated by a payment of $559 million” from Spirit “for a nominal amount of $1.00, subject to adjustment, including based on the final transaction perimeter.”
Boeing explains why it is taking this step
Boeing President and CEO Dave Calhoun said in the company’s statement: “We believe this deal is in the best interests of the flying public, our airline customers, Spirit and Boeing employees, our shareholders and the nation more broadly.”
Boeing previously owned Spirit and Boeing said returning the supplier to Boeing would improve the quality and safety of airplanes that are Boeing’s responsibility. increasing scrutiny by regulators, Congress and airlines.
“By reintegrating Spirit, we can fully align our commercial manufacturing systems, including our safety and quality management systems, and our employees with the same priorities, incentives and results, with safety and quality at the core,” said Calhoun.
The purchase of Spirit would reverse Boeing’s years-long strategy of outsourcing critical work on passenger planes, an approach that has been criticized as problems at Spirit disrupted production and delivery of popular Boeing jetliners, including the 737s and 787s.
Security concerns peaked after the events of January 5. panel blowout on an Alaska 737 Max 9 at 16,000 feet over Oregon. The Federal Aviation Administration announced increased oversight of Boeing and Spirit shortly afterward.
A settlement for Boeing?
Separately, the Ministry of Justice on Sunday Boeing submitted a settlement proposal after it accused Boeing of violating the terms of a 2021 stay of prosecution that was introduced after two 737 Max crashes in 2018 and 2019.
The department told Boeing it could plead guilty or go to court, people familiar with the conversations confirmed to CBS News. The deal would see the company plead guilty to the conspiracy charge it originally faced in 2021. In return, Boeing would pay a fine and enter a three-year trial period, the sources said.
The Justice Department outlined the deal in a presentation to family members of the victims of the 737 Max crash earlier on Sunday, after which it presented the deal to Boeing.
News of the settlement was first reported by Reuters.
If Boeing agrees, a judge must approve the deal.
But Paul Cassell, an attorney representing the families of 15 victims, told CBS News the proposal was “another settlement” and that the families would “vigorously object” to the deal.
Titanium parts a concern
In another safety area, the FAA said in June that it investigation into how titanium parts sold with falsified quality documentation were used in the construction of Boeing and Airbus passenger aircraft in recent years.
Boeing and Airbus have said the planes with the falsely documented parts are safe to fly, but Boeing has said it will remove the affected parts from planes that have not yet been shipped to the airlines.
