Boeing agrees to buy Spirit AeroSystems in $4.7bn deal

Boeing has agreed to buy Spirit AeroSystems in a deal valuing the airline supplier at $4.7bn, after months of negotiations that involved the US aircraft maker as well as its European arch-rival Airbus.

The total transaction value is about $8.3bn, including Spirit’s last reported net debt, said Boeing on Monday. The deal, which values the supplier at about $37.25 per share, will bring Spirit back under Boeing’s wing after two decades apart.

Spirit clinched a deal with Boeing after it reached a separate agreement with Airbus, with the European group taking over parts of the aerospace supplier’s work on some of its own crucial aircraft programmes.

As part of that, Airbus will assume the work that Spirit does for its A220 and A350 aircraft programmes at several sites around the world, including Northern Ireland, the US, France and Morocco.

Airbus will receive $559mn in compensation from Spirit for taking over the lossmaking work, with the European plane maker paying a symbolic $1 for the assets.

Spirit said it planned to sell some businesses, including at Belfast, that are non-Airbus related, as well as operations at Prestwick, Scotland, and in Malaysia.

The aerospace supplier, which makes the body of Boeing’s 737 Max jet, has come under scrutiny over manufacturing problems that have slowed the production of the aircraft. Last year, Spirit’s chief executive was replaced by former Boeing executive Patrick Shanahan.

Boeing has been in talks with Spirit since March. Boeing had spun off the parts builder in 2005 but remained its biggest customer. It has said repurchasing the airline supplier would boost safety in the manufacturing process.

This has been a critical goal for the US plane maker after the mid-air blowout of a section of the main body of one of its 737 Max aircraft in January.

“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 — centred on safety and quality,” said Boeing chief executive Dave Calhoun.

The deal with Airbus will mean more uncertainty for the Belfast operations, which could be broken up. The business is one of the region’s largest manufacturing employers and heir to one of its most historic engineering businesses. The operations span six sites and employ more than 3,000 people. 

“We have serious concerns about the potential carve-up of the business . . . around 1,100 people work on Airbus — what will happen to the rest of the employees?” said Alan Perry at the GMB union.

Boeing said it expected the deal to close by mid-2025. It is being advised on the deal by PJT Partners as well as Goldman Sachs and Consello, while Sullivan & Cromwell is its legal adviser. Spirit is being advised on the terms by Morgan Stanley and Moelis, while its legal counsel was Skadden. 

Additional reporting by Jude Webber in Dublin