Boeing said Monday that it will buy back its struggling fuselage maker Spirit AeroSystems in an all-stock deal that the plane maker has said w

Boeing agrees to buy fuselage maker Spirit AeroSystems in $4.7 billion deal

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2024-07-02 08:30:05

Boeing said Monday that it will buy back its struggling fuselage maker Spirit AeroSystems in an all-stock deal that the plane maker has said will improve safety and quality control.

It said it agreed to pay $37.25 a share in Boeing stock for Spirit, giving the plane supplier an equity value of $4.7 billion. Including Spirit's debt the deal has a transaction value of $8.3 billion Boeing said. Spirit's shares closed Friday at $32.87 a share, a market capitalization of about $3.8 billion.

Boeing in March disclosed it was in talks to acquire the Wichita, Kansas-based company, weeks after a fuselage panel blew out midair from a nearly new Boeing 737 Max 9 on an Alaska Airlines flight, sparking a fresh crisis for Boeing. Spirit makes the fuselages for the 737 and other parts, including sections of Boeing's 787 Dreamliners.

In 2005, Boeing spun off operations in Kansas and Oklahoma that became the present-day Spirit AeroSystems. Boeing accounted for about 70% of Spirit's revenue last year, while roughly a quarter came from making parts for Boeing's main rival, Airbus, according to a securities filing.