Boeing to Reacquire Spirit Aerosystems in $4 Billion Deal Amid New Safety Crisis

Boeing (NYSE:BA) has finalized an agreement to reacquire Spirit Aerosystems (NYSE:SPR) for more than $4 billion, concluding months of speculation surrounding the deal as Boeing faces a new safety crisis. The two companies announced the agreement on Monday. Currently, Spirit Aerosystems’ shares are up more than 4% in pre-market. Under the terms of the deal, Boeing will pay $37.25 per Spirit share in an all-stock transaction, valuing Spirit at $4.7 billion.

Spirit CEO Patrick Shanahan stated that the merger would enhance the integration of both companies' manufacturing and engineering capabilities, including their safety and quality systems.

As part of the acquisition, Spirit will be broken up, with some assets being sold to French aerospace company Airbus to address antitrust concerns. Spirit will divest its operations in Malaysia, Scotland, and Northern Ireland.

This reacquisition marks Boeing's move to bring Spirit back into its fold after spinning off the company in 2005. The deal comes at a time when Boeing is dealing with a renewed safety scandal, following an incident where a door on a 737 MAX 9 jet opened mid-air, highlighting ongoing safety and quality issues.

The new crisis follows the two tragic crashes of the 737 MAX in 2018 and 2019, which resulted in the deaths of over 350 people and increased regulatory scrutiny of Boeing.

Additionally, a Reuters report indicated that the U.S. Justice Department is seeking to charge Boeing with fraud related to the two crashes.