ARLINGTON, Va. (AP) — Boeing has announced plans to acquire Spirit AeroSystems for $4.7 billion in an all-stock transaction for the manufacturing company, which was already part of the aerospace company’s supply chain.
Boeing, based in Arlington, Virginia, announced the purchase in a statement late Sunday.
The value of the acquisition is $4.7 billion and $37.25 per share, while the total value of the deal is approximately $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 returning the supplier to Boeing would improve the quality and safety of planes, a move that 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 employees with the same priorities, incentives and results – focused on safety and quality,” said Calhoun.
The purchase of Spirit would reverse a longstanding strategy by Boeing to outsource crucial work on passenger planes. That approach has been criticized as problems at Spirit disrupted the production and delivery of popular Boeing jetliners, including the 737 and 787.
Safety concerns peaked after the January 5 panel blowout on an Alaska 737 Max 9 at 16,000 feet (4,876 meters) over Oregon. The Federal Aviation Administration announced stricter oversight of Boeing and Spirit shortly thereafter.
The Justice Department alleged in a court filing in May that Boeing violated the terms of a 2021 settlement allowing the company to avoid prosecution for actions that led to two fatal crashes of the company’s 737 Max jetliners more than five years ago.
The Justice Department is urging Boeing to plead guilty to criminal fraud in connection with two deadly plane crashes involving its 737 Max jets, according to several people who heard federal prosecutors work out a proposal on Sunday.
Boeing has until the end of the week to accept or reject the offer, which would require the giant aerospace company to agree to an independent monitor who would oversee compliance with anti-fraud laws, they said.
