Airbus Continues Negotiations With Spirit for Assets Under Binding Term Sheet

The Boeing Company has acquired Spirit AeroSystems for $37.50 per share in Boeing common stock and assumption of Spirit’s outstanding debt. 

The total amount of the transaction is approximately $8.3 billion and the per share price represents 30% premium over Spirit’s last closing stock price of 28.60 on February 29, 2024, the day before the companies announced they were in merger discussions.

Spirit’s President and CEO Patrick Shanahan said of the merger, “After carefully evaluating Boeing’s offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders, and will benefit Spirit’s other stakeholders. Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems.”

Spirit and Airbus will continue good-faith negotiations under a binding term sheet the companies agreed upon to arrive at a definitive agreement for Airbus to acquire Spirit assets that are integral to Airbus projects and programs.

The Boeing transaction will close upon the total divestiture of Airbus business and assets by Spirit, subject to agreement by shareholders of both Boeing and Spirit, and the receipt of regulatory approvals. Spirit’s divestiture of Airbus business includes operations in Subang, Malaysia, Prestwick, Scotland, and Belfast, Northern Ireland.

Regarding Airbus, Shanahan said, “We are proud of the part we have played in Airbus’ programs and believe bringing these programs under Airbus ownership will enable greater integration and alignment.”

FMI: www.spiritaero.com