Boeing to acquire Spirit AeroSystems for $4.7B

Boeing agreed to a $4.7 billion all-stock acquisition of Spirit AeroSystems, a move aimed at reclaiming a parts supplier it sold off roughly 20 years ago. The acquisition, announced Monday, aims to enhance plane quality and safety amid heightened scrutiny.

Spirit AeroSystems, a key supplier of parts for Boeing’s 737 Max, 767, 777, and 787, manufactures fuselages and wing components.

The acquisition, totaling approximately $8.3 billion, including Spirit’s existing debt, underscores the planemaker’s strategic pivot towards internalizing critical aircraft component production. The move is a complete 180 from its 2005 decision when Boeing decided to outsource production in a bid to reduce costs. Up until then, Spirit was owned by the planemaker.

Boeing CEO Dave Calhoun emphasized the deal’s benefits for passengers, airlines, employees, shareholders, and the broader national interest.

But Spirit is also plagued with quality control issues.

The acquisition comes amid ongoing scrutiny following incidents involving Boeing’s 737 Max aircraft, including a mid-air panel blowout on an Alaska Airlines flight in January, currently under investigation by the Federal Aviation Administration (FAA). Spirit assembled the panel that blew off. 

Spirit, responsible for 70% of each 737 Max, also faced production challenges, including recent labor disputes causing delivery delays.