Boeing Completes Spirit AeroSystems Acquisition, Splitting Assets With Airbus in Major Shakeup

Boeing Co. (NYSE: BA) has officially completed its complex takeover of Spirit AeroSystems, ending the supplier’s two-decade run as an independent company and bringing critical production work back inside Boeing as the planemaker tries to stabilize manufacturing quality across several jet programs.

The transaction, valued at $4.7 billion for Boeing’s portion and $8.3 billion overall, gives Boeing direct control of all Spirit operations tied to its commercial aircraft programs, including fuselage production for the 737 MAX, major structures for the 767, 777, and 787, and expanded maintenance, repair, and overhaul capabilities. Approximately 15,000 Spirit employees will now become part of Boeing.“Our focus is on maintaining stability so we can continue delivering high-quality airplanes, differentiated services, and advanced defense capabilities for our customers and the industry,” Boeing CEO Kelly Ortberg said on Monday.

Spirit AeroSystems was originally created in 2005 when Boeing sold its Wichita and Oklahoma operations to Onex. But in recent years, manufacturing lapses at Spirit, including defects that contributed to a near-catastrophic incident early last year, forced Boeing to step in with financial support and ultimately move to reacquire the supplier.

Spirit’s fuselage production delays have been cited as a major factor in ongoing disruptions to Boeing’s 737 MAX output. The reacquisition is designed to give Boeing tighter control over upstream quality and scheduling.As part of the coordinated breakup, Airbus SE acquired several Spirit sites tied to its own aircraft programs, including:

• The Belfast, Northern Ireland facility that builds A220 wings
   
• The North Carolina site producing A350 fuselage sections
   
• The Casablanca, Morocco operation supporting A321 and A220 components

Airbus will receive $439 million in compensation for expected future losses and liability settlements under the purchase agreements.Spirit’s Malaysian operations in Subang were spun off to Composites Technology Research Malaysia, while its Fiber Materials subsidiary was sold earlier this year to Tex-Tech Industries.

The U.S. Federal Trade Commission allowed the deal to proceed in early December on the condition that Boeing completes the planned divestitures and that Spirit remains available as a supplier for competing U.S. military aircraft programs. The European Commission also approved the deal in October after Boeing agreed to sell certain Spirit businesses to address competition concerns.The acquisition brings a large non-union workforce into Boeing just one year after a seven-week strike by IAM District 751 halted most of Boeing’s commercial aircraft production.

About 6,000 Spirit workers previously belonged to the IAM before the 2005 spin-off, raising the possibility that unionization could again become a factor as the newly integrated operations ramp up.

About Boeing

The Boeing Company (NYSE: BA) is one of the world’s largest aerospace manufacturers, producing commercial airplanes, defense systems, and space technologies. Founded in 1916 and headquartered in Arlington, Virginia, Boeing operates global manufacturing, engineering, and services centers supporting airlines, governments, and commercial space partners worldwide. Its commercial portfolio includes the 737, 767, 777, and 787 aircraft families, while its defense programs span military aircraft, rotorcraft, satellites, and autonomous systems.

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.