Boeing has announced that it will buy back Spirit AeroSystems, a manufacturer of parts for its 737 and 787 planes, in an $4.7 billion all-stock deal. The move is aimed at enhancing aircraft production and comes after months of negotiations between the two aerospace companies.
Boeing’s ongoing safety crisis has been a major factor in the decision to bring Spirit Aero back under its umbrella. Boeing’s stock has fallen more than 27% this year due to manufacturing issues that have impacted the aviation industry. Instances of manufacturing problems, such as loose bolts found during safety reviews of Boeing 737 Max 9 planes owned by United Airlines and Alaska Airlines, have led to increased scrutiny of Boeing’s manufacturing process.
Spirit Aero was previously a subsidiary of Boeing before being spun off in 2005. This deal brings it back under the company’s ownership and will improve aircraft production. Additionally, Spirit Aero’s Europe-focused operations will be sold to Airbus, a competitor of Boeing.
While this acquisition is being finalized, Boeing is also in discussions with the Justice Department about a plea deal to resolve potential fraud charges related to two fatal crashes that occurred in 2018 and 2019. Officials found that Boeing violated a deferred prosecution agreement related to these crashes. Details of the plea deal and the outcome of the acquisition deal with Spirit Aero are expected to be revealed soon.
