ARLINGTON, Va. (AP) – Boeing has 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 aerospace company’s production chain.
Boeing, based in Arlington, Virginia, announced the purchase in a statement late Sunday.
The stock value of the $4.7 billion 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, the aerospace company said.
Spirit, based in Wichita, Kansas, produces key components for Boeing aircraft. Spirit also announced the acquisition on its website and social media.
“We believe this deal is in the best interests of the flying public, our airline customers, Spirit and Boeing employees, our shareholders and the country at large,” Boeing President and CEO Dave Calhoun said in the statement.
Boeing previously owned Spirit and the aerospace company said bringing the supplier back into the Boeing group would improve aircraft quality and safety, which has come under increasing scrutiny from regulators, Congress and airlines.
“By reintegrating Spirit, we can fully align our commercial manufacturing systems, including our safety and quality management systems, and our workforce with the same priorities, incentives and results – focused on safety and quality,” said Calhoun.
The purchase of Spirit would reverse a long-standing Boeing strategy of outsourcing key work on its passenger jets. That approach has been criticized as problems at Spirit disrupted the production and delivery of popular Boeing jets, including 737s and 787s.
Safety concerns came to a head after a panel on an Alaska 737 Max 9 exploded Jan. 5 at 16,000 feet (4,876 meters) above Oregon. The Federal Aviation Administration soon after announced increased oversight of Boeing and Spirit.
The Justice Department said in a May court filing that Boeing violated the terms of a 2021 settlement that allowed the company to avoid prosecution for actions that led to two fatal crashes involving the company’s 737 Max jets more than five years ago. past.
The Justice Department is urging Boeing to plead guilty to criminal fraud in connection with two fatal plane crashes involving 737 Max aircraft. This was reported by several people who heard federal prosecutors discuss a proposed offer on Sunday.
Boeing has until the end of the week to accept or reject the offer, with the giant aerospace company agreeing to an independent regulator that would oversee compliance with anti-fraud laws, they said.
