Boeing has announced its plans to acquire Spirit AeroSystems for $4.7 billion, aiming to enhance plane quality and safety amid increasing scrutiny from Congress, airlines, and the Department of Justice. This move marks a reversal of Boeing’s long-term strategy of outsourcing key work, which has faced criticism due to disruptions in production and delivery of popular models like the 737 and 787.
Boeing President and CEO Dave Calhoun stated that the acquisition is in the best interest of the flying public, airlines, employees, shareholders, and the broader country. The deal follows safety concerns highlighted by a panel blowout on an Alaska Airlines 737 Max 9 in January, prompting increased oversight from the FAA.
Although no serious injuries occurred in the Alaska Airlines incident, Boeing is under pressure from the Justice Department to plead guilty to criminal fraud related to two deadly 737 Max crashes over five years ago. The company has until the end of the week to respond to the DOJ’s offer, which includes appointing an independent monitor for compliance with anti-fraud laws.
Spirit AeroSystems, based in Wichita, Kansas, and separate from Spirit Airlines, has faced quality issues in recent years, including improperly fitted fuselage panels and poorly drilled holes. The company’s CEO was replaced in October by Patrick Shanahan, a former Boeing executive and acting defense secretary under the Trump administration.
The deal, valued at $37.25 per share, totals approximately $8.3 billion, including Spirit’s net debt. Boeing’s common stock will be exchanged for Spirit shares based on a variable formula. Additionally, Boeing and Airbus have agreed to negotiate the purchase of Spirit assets involved in Airbus programs once the acquisition is complete.
