European aircraft manufacturer Airbus and Boeing's supplier, Spirit AeroSystems, have finalized an agreement for asset acquisition, marking significant progress in the restructuring of this troubled transatlantic supplier. Under the agreement, Boeing will repurchase Spirit Aero's body manufacturing business, which it spun off 20 years ago, for $4.7 billion in stock. Meanwhile, Airbus will take over Spirit's Europe-focused and loss-making operations.
Airbus will provide Spirit with a $200 million interest-free credit line as part of the deal, and Spirit will compensate Airbus with $439 million. The transaction involves two key factories: Spirit's facility in Kinston, North Carolina, responsible for key components of the Airbus A350 fuselage, and the Belfast plant in Northern Ireland, which produces A220 carbon fiber wings.
Spirit CFO Irene Esteves stated that the agreement is a crucial milestone for Boeing's acquisition. Boeing Commercial Airplanes CEO Stephanie Pope and Spirit CEO Pat Shanahan informed employees that Belfast and Prestwick, Scotland, operations not acquired by Airbus will be transferred to Boeing. Airbus will acquire the A220 wing production line in Belfast and, if necessary, the A220 mid-fuselage production. Additionally, Airbus will take over wing component manufacturing for the A320 and A350 at the Prestwick plant.
Despite Boeing's consideration of reacquiring its former subsidiary, the agreement comes as Boeing seeks to recover production of its 737 MAX model after facing multiple crises in 2024. Spirit Aero, the 737 MAX body manufacturer, had previously warned of its ongoing operational challenges and received financial aid from Boeing and Airbus.
