Boeing is buying back Spirit Aero, a manufacturer of parts for its 737 and 787 planes, in a $4.7 billion all-stock deal aimed at improving the production of its aircraft. The acquisition brings Spirit AeroSystems back into Boeing’s fold, which was previously a Boeing subsidiary before being spun off in 2005.
The announcement comes amid ongoing safety concerns at Boeing, following a series of manufacturing issues that have affected the aviation industry. Boeing’s stock has fallen more than 27% this year due to these concerns, including a door plug blowing out mid-flight on a 737 MAX 9 jet earlier in the year.
In addition to the acquisition of Spirit Aero, Boeing is also in talks with the Justice Department about a potential plea deal to resolve fraud charges. The charges are related to violations of a deferred prosecution agreement following two fatal crashes involving Boeing planes in 2018 and 2019.
As part of the agreement, Spirit AeroSystems’ Europe-focused operations will be sold to Airbus. The deal is expected to be officially announced on Monday, pending approval from regulators and other stakeholders. Overall, the acquisition of Spirit Aero is part of Boeing’s efforts to address safety concerns and improve the production of its aircraft.
