Embattled Boeing has announced it will acquire Spirit Aerosystems in a deal valuing its troubled supplier at $4.7bn (£3.7bn).
The total transaction value is around $8.3bn, including Spirit’s last reported net debt, meaning the return of the firm back into the Boeing fold after a near two decade split.
It comes as both companies grapple with ongoing production issues surrounding the US aircraft manufacturer’s 737 Max jets.
“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” Boeing chief executive Dave Calhoun said.
“By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes – centered on safety and quality.”
The deal, which values its supplier at $37.25 per share, follows months of negotiations and also ropes in the US firm’s arch-rival, Airbus.
Spirit said it had reached a separate deal with the French planemaker that will see it acquire some of its key aircraft programmes.
Airbus will assume the work that Spirit does for its A220 and A350 aircraft programmes, while netting $559m in compensation under the terms of the agreement.
Spirit manufacturers the body of Boeing’s iconic 737 Max jets. However, it has faced significant scrutiny for supply chain delays and manufacturing hiccups, while being roped into the crisis surrounding Boeing following the blowout of an exit door on an Alaska Airlines flight in January.
Chief executive Patrick Shanahan, a former Boeing executive, has been touted as a possible replacement for Dave Calhoun, who announced his departure from the group amid the scandal.
Miami-headquartered Spirit also announced plans to sell some of its businesses, including in Belfast, Northern Ireland and Prestwick, Scotland.
“After carefully evaluating Boeing’s offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders, and will benefit Spirit’s other stakeholders,” Shanahan said in a statement.
“Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems.”
Boeing expects to close the deal by mid-2025.