HomeIndustriesBoeing Makes $35 Per Share Offer for Spirit AeroSystems

Boeing Makes $35 Per Share Offer for Spirit AeroSystems

Troubled airplane maker Boeing has submitted an official bid for aerostructure manufacturer Spirit AeroSystems. Boeing is willing to pay $35 per share, an offer that represents a premium of around 6% compared to Spirit Aero’s closing price of $33.07 per share on Monday. The total value of the deal could be north of $4 billion, according to The Wall Street Journal.

Boeing entered talks to buy Spirit AeroSystems earlier this year, and it was initially an all-cash deal. However, Boeing was forced to reconstruct the deal and will now fund it with stocks. The twist is likely a result of Boeing’s recent financial struggles and the fact that it has been burning through $1 billion on a monthly basis as it attempts to fix recent shortcomings and address issues that plagued its airplanes.

When the news about Boeing’s acquisition of Spirit AeroSystems first came out, the airplane maker said that it was pursuing the deal in order to improve safety and quality.

Spirit AeroSystems produces several key airplane components, including fuselage. Around fifth of its revenue comes from supplying Boeing’s competitor Airbus. Its business with Airbus has been a major component of the acquisition talks, with the most likely solution being that the division that works with Airbus will split from the main company.

The finer details of the agreement are still being ironed out, and the official announcement is expected to come in the upcoming weeks.

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