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Boeing to Acquire Spirit Aerosystems in a Deal Valued at $8.3 Billion

  • July 1, 2024

 

Boeing Merger

 

Boeing Co. (BA) on July 1, 2024, announced a deal to acquire Spirit Aerosystems Holdings Inc. (SPR) for $8.3 billion including debt, after months of talks between the U.S. planemaker and its supplier.

Deal Structure:

Under the terms of the deal, each share of Spirit common stock will be exchanged for a number of shares of Boeing common stock equal to an exchange ratio between 0.18 and 0.25, calculated as $37.25 divided by the volume weighted average share price of Boeing shares over the 15-trading-day period. Spirit shareholders will receive 0.25 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or below $149.00, and 0.18 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or above $206.94.

The equity price of $37.25 per share, represents a premium of 13.33% from the stock’s last close on June 28, 2024.

Company Profile:

Spirit AeroSystems, headquartered in Wichita, Kansas, is a leading manufacturer of aerostructures for commercial, defense, and business jets, specializing in fuselages, wings, pylons, and nacelles, with facilities in the U.S., U.K., France, Malaysia, and Morocco.

Boeing, a leading global aerospace company and top U.S. exporter, develops and services commercial airplanes, defense products, and space systems in over 150 countries, focusing on innovation, sustainability

Airbus Term Sheet:

Separately, Boeing’s rival Airbus SE also entered a term sheet with Spirit wherein the European planemaker will be compensated by payment of $559 million from Spirit AeroSystems, depending on the final outlines of the deal, while it would pay Spirit a symbolic $1 for the assets. Airbus is also a customer of Spirit like Boeing.

Under this deal, Airbus will take over core activities at Spirit’s plants in the United States, Northern Ireland, France, and Morocco, as well as some activities in Wichita, Kansas.

The deal with Airbus was prompted by Boeing’s decision to repurchase its former subsidiary, which had been supplying Airbus and others since it separated from Boeing nearly two decades ago.

Other Deal Details:

Spirit also plans to divest operations in Malaysia, Scotland which support Airbus programs, and Northern Ireland excluding Airbus-related activities.

Spirit Aersystems’s current EV/Sales (TTM) ratio is 1.21, below the sector median of 1.83.

The deal with Boeing is expected to close in mid-2025.

Deal Metrics:

For more comprehensive details on this merger and acquisition transaction, visit the Deal Metrics page:

Deal metrics for the acquisition of Spirit Aerosystems Holdings Inc. (SPR) by Boeing Co. (BA)

The Deal Metrics page for each merger or acquisition includes:

– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.

Disclaimer: Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article