Boeing Desperately Seeks to Buy Out Spirit AeroSystems Using Stock

Boeing has made a significant move to acquire Spirit AeroSystems Holdings, proposing a deal primarily funded through stock, according to a report by Bloomberg News citing sources familiar with the matter.

Offer values Spirit AeroSystems about $35 per share

The offer values Spirit AeroSystems at approximately $35 per share, totaling around $4.08 billion based on Reuters calculations using Spirit’s outstanding shares as of May 7.

Under the proposed agreement, a segment of Spirit AeroSystems responsible for manufacturing parts for Airbus in Northern Ireland and North Carolina would be sold to the European planemaker.

This strategic shift in approach to financing the acquisition is reportedly aimed at alleviating concerns over Boeing’s cash flow, which has been strained this year due to reduced aircraft production.

Final terms of the deal still being negotiated

The revised payment terms indicate Boeing’s flexibility in adapting to financial challenges, potentially easing pressure on the cash-strapped company. While final terms are still being negotiated, sources suggest that a small cash component might also be included in the deal.

Boeing’s decision to modify the financing structure marks a new phase in what has been a complex transaction, which will additionally involve Spirit AeroSystems spinning off some of its manufacturing facilities to Airbus SE. Despite the added complexity, insiders indicate that the three-way transaction is expected to be formally announced in the coming days.

The $35 per share valuation is seen as a reasonable outcome benefiting both Boeing and Spirit AeroSystems, signaling progress towards finalizing a deal that could reshape the aerospace manufacturing landscape.