Proactive Investors - Boeing Co (NYSE:BA) shares are set to fall on Monday after it agreed to buy Spirit AeroSystems in an all-share deal, bringing its parts supplier arm back into the group for a total cost of $8.3 billion.
The US aerospace company will buy "substantially all" of commercial operations related to its own aircraft, as well as additional commercial, defense and aftermarket operations.
As part of the deal, European rival Airbus has struck an agreement with Spirit to take over work packages that the supplier was working on for its aircraft.
Spirit is also proposing to sell its non-Airbus operations in Belfast, Northern Ireland; in Prestwick, Scotland, and Subang, Malaysia.
The merger values Spirit at $4.7 billion, or $37.25 per share, with the total transaction value including debt.
"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," said Boeing CEO Dave Calhoun.
"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."
The agreed deal at $37.25 per share is higher than the expected prices reported by media last week, which were nearer $35 per share.
Spirit shareholders will receive 0.25 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or below $149.00, and 0.18 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or above $206.94.
The transaction is expected to close 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.