Today Boeing announced it has entered into a definitive agreement to acquire Spirit AeroSystems. This merger is an all-stock deal valued at an equity value of approximately $4.7 billion (or $37.25 per share). The total deal value is about $8.3 billion, including Spirit’s last reported net debt.
Each share of Spirit’s common stock will be exchanged for a number of shares of Boeing’s 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 before the closing (subject to a floor of $149.00 per share and a ceiling of $206.94 per share).
Spirit’s shareholders will receive 0.25 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or below $149 and 0.18 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or above $206.94.
Boeing’s acquisition of Spirit will include substantially all Boeing-related commercial operations and additional commercial, defense, and aftermarket operations. And as part of the deal, Boeing will work with Spirit to ensure the continuity of operations supporting Spirit’s customers and programs it acquires, including working with the U.S. Department of Defense and Spirit defense customers regarding defense and security missions.
Airbus SE and Spirit 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.
Plus, Spirit is proposing to sell certain of its operations, including those in Belfast, Northern Ireland (non-Airbus operations), Prestwick, Scotland, and Subang, Malaysia. The deal is expected to close in 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.
PJT Partners is Boeing’s lead financial advisor, with Goldman Sachs and Consello acting as additional advisors. And Sullivan & Cromwell LLP is Boeing’s outside counsel.
KEY QUOTES:
“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, 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.”
“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 programs.”
- Boeing President and CEO Dave Calhoun
