Boeing has agreed to repurchase Spirit AeroSystems for $4.7 billion in stock, while Airbus will assume control of Spirit’s loss-making Europe-focused activities, compensating with hundreds of millions of dollars, following extensive negotiations.
This deal ends Spirit AeroSystems’ nearly two-decade independence. The world’s largest standalone aerostructures company is being divided between its primary customers due to the latest Boeing 737 MAX crisis. The January blowout of a door plug on a new 737 MAX brought to a head concerns about the durability of fuselage manufacturing.
Boeing, which originally spun off Spirit in 2005, announced it would buy back the company for approximately $37.25 per share, equating to an enterprise value of $8.3 billion including debt, according to a Reuters report.
“Reuniting Spirit and Boeing will enhance the integration of our manufacturing and engineering capabilities, including safety and quality systems,” Spirit CEO Pat Shanahan stated. In premarket trading, Spirit shares rose by about 8%, while Boeing shares fell just under 1%. The Wichita-based Spirit said the acquisition offers a 30% premium over its stock price from before the March 1 announcement of the discussions to reintegrate the struggling supplier.
Boeing had considered repurchasing Spirit for some time, with analysts noting Spirit’s challenges to succeed independently despite expanding its work for Airbus and other clients. This move follows a broad crisis at Boeing, exacerbated by the 737 MAX door plug failure, which highlighted quality issues and slowed production, affecting the global aviation industry.
Boeing also announced that CEO Dave Calhoun would step down amid the crisis, with industry speculation pointing to Spirit’s Shanahan, a former Boeing executive, as a potential successor. The Boeing-Spirit deal is expected to finalize by mid-2025. Bernstein analyst Douglas Harned suggested that the deal “could focus Boeing’s board on deciding the next CEO.”
Airbus Agreement
Spirit, the door plug manufacturer, was initially spun off from Boeing as part of cost-cutting measures criticized for prioritizing expense over quality. Boeing decided to reacquire Spirit following the door plug issue to address safety concerns and stabilize production. This decision raised concerns about Spirit’s future work for Airbus, with the European company’s CEO warning in April about potential control changes in Airbus-related operations.
Airbus will now take over primary activities at four Spirit plants in the U.S., Northern Ireland, France, and Morocco, alongside minor operations in Wichita. This separate deal, coordinated loosely with Boeing and Spirit, remains subject to due diligence. Airbus shares rose by about 2% in Monday morning trading.
Due to losses in Spirit’s Airbus-related activities, Airbus pushed for up to $1 billion in compensation. Airbus will receive $559 million from Spirit and pay a symbolic $1 for the assets. This approach mirrors Airbus’s 2018 acquisition of the CSeries program from Bombardier for $1, which was rebranded as the A220. The deal secures the future of Northern Ireland’s key industrial employer, though significant investment will be needed to enhance A220 wing production efficiency.
Spirit also plans to divest its operations in Prestwick, Scotland, and Subang, Malaysia, that support Airbus programs, and those in Belfast not related to Airbus.
