Spirit to be acquired by Boeing in a $4.7 billion deal

The two firms announced on Monday that Boeing has decided to reacquire Spirit Aerosystems for a sum over $4 billion, putting an end to months of uncertainty about the transaction as the aircraft manufacturer grappled with a fresh safety issue.

Spirit announced in a news statement that Boeing will pay $37.25 per share for the company in an all-stock transaction, valuing Spirit at $4.7 billion. The sale will have a total transaction value of $8.3 billion, including debt.

Due to antitrust concerns, the purchase will see the breakup of Spirit, with part of its assets going to the French aircraft manufacturer Airbus. Spirit stated that as part of the agreement, it will sell its businesses in Scotland, Northern Ireland, and Malaysia.

Spirit was separated from Boeing in 2005, but Boeing will now reunite with the firm. The action is being taken concurrently with Boeing's ongoing safety controversy, which was sparked by a 737 MAX 9 door opening in midair that revealed several safety and quality problems.

The resurgence of the problem follows two 737 MAX aircraft disasters in 2018 and 2019, which resulted in the deaths of over 350 people and increased regulatory scrutiny on the firm.

(Sources: investing.com, reuters.com)