Welcome to Extreme Investor Network, where we provide you with exclusive insights and updates on the latest business news. Today, we are diving into the recent announcement by Boeing Co. regarding its acquisition of struggling fuselage maker Spirit AeroSystems in an all-stock deal.
Boeing revealed on Monday that it had agreed to pay $37.25 a share in Boeing stock for Spirit, with an equity value of $4.7 billion and a total transaction value of $8.3 billion including Spirit’s debt. This move comes in the wake of a recent crisis for Boeing, where a fuselage panel blew out midair from a Boeing 737 Max 9 on an Alaska Airlines flight. Spirit is responsible for manufacturing fuselages for the 737 and other parts for Boeing, including sections of the 787 Dreamliners.
This acquisition aligns with Boeing CEO Dave Calhoun’s vision to strengthen quality and safety control within the company. Calhoun emphasized that bringing Spirit in-house will fully align the companies’ production systems and workforces, demonstrating Boeing’s commitment to becoming a world-leading aerospace company.
Additionally, Airbus announced an agreement with Spirit to acquire its manufacturing lines dedicated to Airbus planes for $559 million. This includes operations in Belfast, Northern Ireland, Wichita, and North Carolina, underlining the strategic realignment within the aerospace industry.
The mounting pressure on Boeing to address production issues has led to a slowdown in deliveries and financial challenges for both Boeing and Spirit. The National Transportation Safety Board’s preliminary report highlighted production problems on Boeing planes, including misdrilled holes and misconnected fuselage panels. Boeing is aiming to improve quality control by accepting only defect-free fuselages to reduce errors in the manufacturing process.
As we look ahead, the deal is expected to close in mid-2025, subject to regulatory approval and shareholder consent. Spirit’s CEO, Pat Shanahan, is considered a potential successor for Calhoun, indicating a smooth transition in leadership.
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