In an effort to stabilize its supply chain after a turbulent year, Boeing said on Monday that it will reassert Spirit AeroSystems as a supplier.
Spirit’s net debt plus the aerospace giant’s purchase price of around $8.3 billion, or $37.25 per share, will be paid. The purchase is slated to finalize in mid-2025, and Spirit stockholders will receive a quarter of a Boeing share for each share owned in the supplier.
Spirit CEO Patrick M. Shanahan stated in a statement that “bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems.”
After a door plug of a Boeing 737 Max 9 aircraft blew off in January, sparking a wave of inquiries and heightened scrutiny of Boeing’s operations and safety protocols, the businesses started talking. Spirit had built that aircraft. In May, a whistleblower claimed he was fired from the company for raising too many concerns about the quality of the plane bodies the company was assembling.
According to Boeing, the reintegration will raise the standard and safety of its operations. Spirit, a company based in Wichita, Kansas, was split off in 2005. It has been charged with neglecting to carry out adequate quality control at its facilities, which resulted in an almost catastrophic event earlier this month.
“This agreement marks an important step in demonstrating Boeing’s commitment to aviation safety.”
In a note to employees, departing Boeing CEO Dave Calhoun stated, “As I’ve said before, we will be measured one airplane at a time,” “This agreement marks an important step in demonstrating Boeing’s commitment to aviation safety.”
The businesses state that all commercial, defense, and aftermarket operations will be “substantially” included in the deal. According to Boeing, Spirit and Boeing will collaborate to serve the company’s current clients and initiatives, including its engagement with the Department of Defense.
Airbus, Boeing’s competitor in Europe, has also signed into an agreement with Spirit, despite having promised to thwart any agreement involving Boeing producing parts for its new planes. Airbus will buy “certain commercial work packages” that Spirit presently provides to the corporation, if the deal closes.
Additionally, Spirit wants to sell its businesses in Malaysia and Scotland, among other places.