-Boeing said Monday it would buy its struggling supplier Spirit AeroSystems in a $4.7 billion all-stock deal that closed after months of talks as the aerospace giant tries to resolve a full-blown safety and regulatory crisis which has swamped its main supplier as well.
The total transaction value is approximately $8.3 billion, including Spirit’s last reported net debt, Boeing said.
The company added that each Spirit share will be exchanged for a number of Boeing 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 take over certain commercial work packages that Spirit is performing for Airbus with the completion of the Boeing-Spirit merger.
Boeing also said Spirit plans to sell certain operations, including its Belfast operations, 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 two dominant global manufacturers of commercial aircraft, to separate Spirit facilities.
The former Boeing subsidiary also supplies Airbus, which does not want Boeing to make important parts for its aircraft.
(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)
