Background on Spirit AeroSystems and Boeing Acquisition
Spirit AeroSystems, a significant supplier of aircraft components to Boeing, was spun off from Boeing in 2005. Recently, Boeing announced its intention to acquire Spirit AeroSystems for approximately $8.3 billion, including cash and net assumed liabilities, following revelations of quality and manufacturing deficiencies in Boeing’s 737 Max-9 aircraft and Spirit’s components.
Airbus Acquires Key Assets from Spirit AeroSystems
In a separate agreement, Airbus has reached an accord with Spirit AeroSystems to take control of certain assets in Europe and the United States where components for Airbus aircraft are manufactured. This deal is part of Boeing’s acquisition process of Spirit AeroSystems.
List of Acquired Assets
- Spirit AeroSystems plants in Kinston, USA; St. Nazaire, France; and Casablanca, Morocco.
- Production of A350 fuselage parts in Kinston, USA; St. Nazaire, France; and Casablanca, Morocco.
- Production of A321 and A220 components in Casablanca, Morocco.
- Production of A220 wings in Wichita, USA and Belfast, Northern Ireland.
- Production of A320 and A350 wing components in Prestwick, Scotland.
- Belfast fuselage parts production center for the A220, subject to finding an “adequate” buyer or being sold to a third party.
Interest-Free Credit Lines for Spirit AeroSystems
Airbus has also signed a memorandum of understanding with Spirit AeroSystems, providing interest-free credit lines totaling $200 million. These funds will support Airbus programs, ensuring a more stable and sustainable supply chain for Airbus aircraft.
Compensation and Future Implications
In exchange for these arrangements, Airbus will receive $439 million, aligning with the binding agreement closed in July 2024. This acquisition aims to secure a more stable and sustainable supply chain for Airbus aircraft, both operationally and financially.
Regulatory Approval and Timeline
The deal is subject to approval from relevant authorities, with expectations of officialization by the third quarter of 2025.
Key Questions and Answers
- What is the main agreement between Airbus and Spirit AeroSystems? Airbus has secured certain assets from Spirit AeroSystems, including manufacturing plants in the US, France, and Morocco, as well as providing interest-free credit lines to Spirit.
- Why is Airbus acquiring these assets from Spirit AeroSystems? This move ensures a more stable and sustainable supply chain for Airbus aircraft, both operationally and financially.
- What credit lines has Airbus provided to Spirit AeroSystems? Airbus has offered interest-free credit lines totaling $200 million to support Airbus programs.
- What is the total value of the acquisition and compensation? Boeing will pay approximately $8.3 billion for Spirit AeroSystems, while Airbus will receive $439 million as part of their agreement.
- When is the acquisition expected to be officially finalized? The deal is subject to regulatory approval, with expectations of officialization by the third quarter of 2025.
