Boeing to purchase Spirit Aero in $4.7 billion deal after months of talks

(Reuters) -Boeing said on Monday it will buy Spirit AeroSystems in a $4.7 billion all-stock deal following months of talks, because it tries to resolve a sprawling corporate and industrial crisis that has also engulfed the important thing supplier.

Boeing said the full deal value was about $8.3 billion including debt. Each share of Spirit common stock will likely be exchanged for between 0.18 and 0.25 Boeing shares, leading to an equity value of about $37.25 per share, as reported by Reuters on Sunday.

Spirit’s shares closed at $32.87 on Friday.

Individually, Airbus, also a Spirit customer, said it will take over core activities at 4 of the supplier’s plants in the USA, Northern Ireland, France and Morocco in addition to minor activities in Wichita, Kansas.

The Airbus a part of the deal was triggered by Boeing’s decision to purchase back its former subsidiary, which had branched out into supplying Airbus and others since becoming independent from Boeing almost twenty years ago.

Since the Airbus-related activities lose money, industry sources had said the European planemaker was pressing for as much as $1 billion in compensation in return for taking on the plants, which make strategic parts for the A350 and A220 jets.

Airbus said it will receive $559 million in compensation from Spirit, depending on the ultimate outlines of the deal, while it will pay Spirit a symbolic $1 for the assets.

Spirit said it also planned to sell businesses and operations in Prestwick, Scotland and in Subang, Malaysia that support Airbus programs. It also plans to sell operations in Belfast, Northern Ireland that don’t support Airbus programs.

Boeing said the Spirit deal was expected to shut by mid-2025.

(Reporting by Mike Stone and David Shepardson in Washington, Allison Lampert in Montreal, Tim Hepher in Paris and Shivansh Tiwary, Abhijith Ganapavaram and Shivani Tanna in Bengaluru; Editing by Arun Koyyur, David Gaffen, Matthew Lewis and Jamie Freed)

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