Boeing Acquires Spirit AeroSystems for $4.7 Billion, Strengthening Aerospace & Defense Fuselage Manufacturing Capabilities

01 Jul, 2024

Boeing Acquires Spirit AeroSystems for $4.7 Billion, Strengthening Aerospace & Defense Fuselage Manufacturing Capabilities

Boeing will purchase fuselage manufacturer Spirit AeroSystems in an all-stock deal valued at $4.7 billion, with the overall transaction including Spirit’s debt totaling $8.3 billion. Boeing will pay $37.25 per share in company stock, aiming to improve production safety and quality control. Spirit AeroSystems, which produces fuselages for Boeing’s 737 and 787 Dreamliners, has recently faced significant production challenges, such as misdrilled holes and misconnected panels, impacting Boeing’s delivery schedules and finances. This acquisition follows Boeing’s March announcement of interest in Spirit, after a fuselage panel issue occurred on an Alaska Airlines flight.

Boeing CEO Dave Calhoun highlighted that integrating Spirit’s operations would better align their production systems, expecting the deal to finalize by mid-2025, subject to regulatory and shareholder approval. Pat Shanahan, Spirit’s CEO, is considered a potential successor to Calhoun, who plans to retire. Airbus, another major client of Spirit, will receive $559 million as part of the agreement to take over Spirit’s Airbus-focused manufacturing lines. Boeing’s strategic acquisition underscores its dedication to addressing production issues and strengthening its position in the aerospace sector.