U.S. aircraft manufacturer Boeing has said it had reached a “definitive deal” to buy its subcontractor Spirit, which has faced scrutiny over production quality control in recent months.
“The merger is an all-stock transaction at an equity value of approximately $4.7 billion, or $37.25 per share,” the company said in a statement.
Boeing disclosed in March that it was in talks to potentially reacquire Spirit, which it spun off in 2005 to lower costs.
“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders, and the country more broadly,” said Boeing president and CEO Dave Calhoun.
He said by reintegrating Spirit, “we can fully align our commercial production systems”, including safety and quality management systems, and “our workforce to the same priorities, incentives, and outcomes centered on safety and quality”.
Spirit AeroSystems builds fuselages and other significant parts for both Airbus and Boeing.
Airbus said separately that it would buy Spirit AeroSystems facilities that produce parts for its aircraft for a nominal fee of $1, and will be “compensated by payment of $559 million from Spirit AeroSystems” for the transaction.
This includes production sites related to the A350 in North Carolina and France, as well as the production of the A220’s wings and mid-fuselage in Belfast and Casablanca in Morocco.
It would also cover the A220 pylons which are made in Kansas in the United States.
Airbus said the agreement “aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially.”
