The aerospace industry has been buzzing with the recent news of Boeing’s plans to acquire Spirit AeroSystems in a $4.7 billion all-stock transaction. This strategic move by Boeing, based in Arlington, Virginia, aims to bring Spirit back into its manufacturing chain, which is expected to enhance the quality and safety of Boeing’s aircraft.
Spirit AeroSystems, located in Wichita, Kansas, is a key supplier for Boeing, manufacturing crucial parts for its aircraft. The acquisition, with an equity value of $4.7 billion at $37.25 per share, will also include Spirit’s net debt, making the total value of the deal around $8.3 billion.
This acquisition is expected to streamline Boeing’s commercial production systems, aligning safety and quality management systems, and workforce incentives to prioritize safety and quality.
Boeing’s decision to bring Spirit back in-house comes as a reversal of its previous strategy of outsourcing key work on its passenger planes. This shift is aimed at addressing production and delivery disruptions that have affected popular Boeing jetliners like the 737s and 787s.
Safety concerns surrounding Boeing aircraft have been in the spotlight in recent years, with incidents like the blowout of a panel on an Alaska 737 Max 9 and increased oversight by regulators. In a May court filing, the Justice Department revealed that Boeing had violated terms of a 2021 settlement related to two deadly crashes involving its 737 Max jetliners more than five years ago.
The Justice Department is reportedly pushing Boeing to plead guilty to criminal fraud in connection with the plane crashes, with a proposed offer that includes the appointment of an independent monitor to oversee the company’s compliance with anti-fraud laws. Boeing has until the end of the week to accept or reject this offer.
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