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Boeing on Monday announced it will bring supplier Spirit AeroSystems back under its umbrella as the company seeks to stabilize its supply chain amid a tumultuous year.
The aerospace giant will acquire Spirit for about $8.3 billion, or $37.25 per share, including Spirit’s net debt. Spirit shareholders will receive a quarter of one Boeing share for each share owned in the supplier under the terms of the deal, which is expected to close in mid-2025.
“Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems,” Spirit CEO Patrick M. Shanahan said in a statement.
Talks between the companies began after a Boeing 737 Max 9 jet had a door plug blow off in January, which led to waves of investigations and increased scrutiny over Boeing’s operations and safety measures. Spirit had crafted that jet. A whistleblower in May said he was ousted because he too frequently called out quality issues on plane bodies being put together by the company.
Boeing has said the reintegration would improve the safety and quality of its operations. Wichita, Kansas-based Spirit was spun off in 2005 and has been accused of failing to conduct proper quality control at its facilities, which led to a near-disastrous incident earlier this month.
“As I’ve said before, we will be measured one airplane at a time,” outgoing Boeing CEO Dave Calhoun said in a message to staff. “This agreement marks an important step in demonstrating Boeing’s commitment to aviation safety.”
The acquisition will “include substantially” all commercial, defense, and aftermarket operations, according to the companies. Boeing said it will work with Spirit to continue supporting its existing customers and programs, such as its work with the Department of Defense.
Boeing’s European rival Airbus, which threatened to block any deal that involved Boeing making parts for its new models, has entered its own agreement with Spirit. Assuming the acquisition is completed, Airbus will purchase “certain commercial work packages” Spirit currently does for the company.
Spirit is also aiming to sell its operations in several areas, including Scotland and Malaysia.