Boeing Agrees to Acquire Spirit AeroSystems

DALLAS — Boeing agreed on Sunday to acquire Spirit AeroSystems (SPR) for US$37.25 per share, in an all-stock deal that values the Whichita-headquartered aerostructures supplier at more US$4.34 billion, according to an exclusive report from Reuters.

Two sources familiar with the matter told the news outlet that the boards of Boeing and SPR met on Sunday and "agreed to terms of the deal," adding that an official announcement could come as soon as tomorrow Monday, July 1.

Two weeks ago, Reuters reported that Boeing was "nearing a deal to buy back Spirit AeroSystems" after the aircraft parts supplier and former Boeing subsidiary met with Airbus for what is described as a "transatlantic breakup," though it is more an amicable divorce, including a shared custody of assets.

Soon after the Alaska Airlines (AS) Boeing 737 MAX mid-flight blow out on January 5, Boeing began discussions to buy back SPR to rejig its 737 MAX supply chain in an effort to fix overarching production quality issues.

The Airbus-Boeing Duopoly Must Endure

If an official announcement of the SPR acquisition comes tomorrow, it would confirm Reuters' reporting that Boeing and Airbus had worked things out, dividing SPR's programs so they cater to each plane maker separately.

"We are in an industry where quality and safety is top priority." - Airbus CEO Guillaume Faury

Back in March at the “Europe 2024” conference in Berlin, Airbus CEO Guillaume Faury voiced worries about upholding the safety reputation of the aircraft sector. "I am not happy with the problems of my competitor,” replied Faury to questions about Boeing’s technical woes. "They are not good for the industry a whole."

The news of Boeing's SPR acquisition comes on the same day the U.S. Justice Department is said to have proposed a plea deal to Boeing that includes US$487.2 million penalty half credited from previous settlement.

The Seattle-based manufacturer could also "face three years of probation and independent safety audits." This is a good thing for Boeing, as many, including Airbus, do not want to see the fall of the iconic aerospace giant and third largest manufacturing company in the U.S.

UPDATE: Boeing has confirmed its agreement to acquire SPR. Here are the terms of the agreement.