Boeing to acquire key supplier Spirit AeroSystems for $4.7 billion

Boeing will be buying Spirit AeroSystems in a $4.7-billion, all-stock deal following months of talks, as it tries to resolve a sprawling corporate and industrial crisis that has also engulfed the key supplier.
Boeing has said that the total deal value is about $8.3 billion, including debt. Each share of Spirit common stock will be exchanged for between 0.18 and 0.25 Boeing shares, resulting in equity value of about $37.25 per share.
Separately, Airbus, also a customer of Spirit, has said that it will take over core activities at four of the supplier’s plants in the United States, Northern Ireland, France and Morocco as well as minor activities in Wichita, Kansas.
The Airbus part of the deal was triggered by Boeing’s decision to buy back its former subsidiary, which had branched out into supplying to Airbus and others since becoming independent from Boeing almost two decades ago.
According to industry sources, Airbus was pressing for up to $1 billion in compensation in return for taking over the plants, which make strategic parts for the A350 and A220 jets. The European plane-maker has added that it will receive $559 million in compensation from Spirit, depending on the final outlines of the deal, while it will pay Spirit a symbolic $1 for the assets.

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