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Boeing has agreed to buy Spirit AeroSystems in a deal valuing the airline supplier at $4.7bn, after months of negotiations that involved the US aircraft maker as well as its European arch-rival Airbus, according to people briefed on the matter.
The deal, which values the supplier at about $37.25 per share, will bring Spirit back under Boeing’s wing after two decades apart. Boeing had spun off the parts builder in 2005 but remained its biggest customer.
Spirit clinched a deal with Boeing after it reached a separate agreement with Airbus, with the European group taking over parts of the aerospace supplier’s work on some of its own key aircraft programmes.
As part of that, Airbus will assume the work that Spirit does for its A220 and A350 aircraft programmes at several sites around the world, including in Belfast in Northern Ireland, said several people familiar with the discussions.
Spirit, which makes the body of Boeing’s 737 Max jet, has come under scrutiny over manufacturing problems that have slowed the production of the aircraft. Last year, Spirit’s chief executive officer was replaced with former Boeing executive Patrick Shanahan.
Boeing has been in talks with Spirit since March. It has said repurchasing the airline supplier would boost safety in the manufacturing process. This has been a key goal for the Seattle-based company after the mid-air blowout of a section of the main body of one of its 737 Max aircraft in January.
“The reintegration of Boeing and Spirit AeroSystems’ manufacturing operations would further strengthen aviation safety, improve quality and serve the interests of our customers, employees, and shareholders,” Boeing said in March.
Boeing is being advised on the deal by PJT Partners as well as Goldman Sachs and Consello, while Sullivan & Cromwell is its legal adviser.
Spirit is being advised on the terms by Morgan Stanley and Moelis, while its legal counsel was Skadden.
The finalising of the deal was earlier reported by Reuters.