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

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

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

Spirit’s shares closed at $32.87 on Friday.

Separately, Airbus, also a Spirit customer, said it would take over core activities at four of the supplier’s plants in the United States, Northern Ireland, France and Morocco as well as minor activities in Wichita, Kansas.

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

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

Airbus said it would receive $559 million in compensation from Spirit, depending on the final outlines of the deal, while it would 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 do not support Airbus programs.

Boeing said the Spirit deal was expected to close 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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