July 16, 2024 21:22 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Trainee IAS officer Puja Khedkar recalled to academy, her training put on hold | Bengal teacher recruitment scam: Supreme Court asks respondents to file counter pleas | Supreme Court serves notice to CBI, ED over Manish Sisodia's bail plea | Rahul Gandhi slams 'BJP's wrong policies' after 4 soldiers martyred in Kashmir's Doda | Bihar politician Mukesh Sahani's father murdered at home, mutilated body found
Boeing agrees to acquire Spirit AeroSystems in $4.7bn deal
Boeing
Image credit: File image by Sven Piper/Unsplash & Duch/Wikimedia Commons

Boeing agrees to acquire Spirit AeroSystems in $4.7bn deal

| @indiablooms | 01 Jul 2024, 05:43 pm

Arlington/IBNS: American aerospace manufacturer Boeing on Monday (July 1) announced it has entered into a definitive agreement to acquire Kansas-based aerostructure manufacturer Spirit AeroSystems, according to a statement issued by Boeing.

The merger is an all-stock transaction at an equity value of approximately $4.7 billion, or $37.25 per share, while the total transaction value is approximately $8.3 billion, including Spirit AeroSystems' last reported net debt, the statement read.

According to the Virginia-headquartered aerospace manufacturer, each share of Spirit AeroSystems 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 ending on the second trading day prior to the closing (subject to a floor of $149.00 per share and a ceiling of $206.94 per share).

Shareholders of Spirit AeroSystems 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, as per the statement.

Commenting on the merger, Boeing President and CEO Dave Calhoun said, "We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly."

"By reintegrating Spirit AeroSystems, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes – centered on safety and quality," Calhoun added.

Boeing said its acquisition of Spirit AeroSystems will include substantially all Boeing-related commercial operations, as well as additional commercial, defense and aftermarket operations.

As part of the transaction, Boeing will work with Spirit to ensure the continuity of operations supporting Spirit's customers and programmes it acquires, including working with the US Department of Defence and Spirit defense customers regarding defense and security missions, the company stated.

"We are proud of the role Boeing plays in supporting our men and women in uniform and are committed to ensuring continuity for Spirit's defense programmes," the Boeing President said.

Meanwhile, European multinational aerospace corporation Airbus SE and Spirit AeroSystems have also entered into a binding term sheet under which Airbus will acquire, assuming the parties entered into definitive agreements and receipt of any required regulatory approvals, certain commercial work packages that Spirit performs for Airbus concurrently with the closing of the Boeing-Spirit merger.

In addition, Spirit is proposing to sell certain of its operations, including those in Belfast, Northern Ireland (non-Airbus operations), Prestwick, Scotland, and Subang, Malaysia, according to Boeing.

The transaction is expected to close mid-2025 and is subject to the sale of the Spirit operations related to certain Airbus commercial work packages and the satisfaction of customary closing conditions, including regulatory and Spirit shareholder approvals, as per the Boeing statement.

Global advisory-focused investment bank, PJT Partners, is acting as lead financial advisor to Boeing, with Goldman Sachs & Co, LLC and Consello acting as additional advisors, while Sullivan & Cromwell LLP is acting as outside counsel to Boeing, the statement read.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.