Airbus Acquires Spirit AeroSystems Assets for $4.39 Billion

Airbus has finalized the acquisition agreement with Spirit AeroSystems, marking a significant milestone in the aerospace industry. The deal involves Airbus acquiring key assets from Spirit AeroSystems, a major supplier of aerostructures for commercial and defense aircraft. This acquisition is expected to strengthen Airbus's supply chain and enhance its production capabilities, particularly in the manufacturing of aircraft components.

The agreement includes Airbus providing a $2 billion interest-free credit line to Spirit AeroSystems as part of the transaction. Additionally, Airbus will receive a $4.39 billion compensation from Spirit AeroSystems. The deal involves two core factories: Spirit's facility in Kinston, North Carolina, which manufactures critical components for the Airbus A350, and the factory in Belfast, Northern Ireland, which produces carbon fiber wings for the A220. Spirit's Chief Financial Officer, Irene Esteves, stated that reaching this agreement is a crucial milestone in advancing Boeing's acquisition and aligns with Spirit's and its shareholders' interests.

According to a letter from Boeing Commercial Airplanes CEO Stephanie Pope and Spirit CEO Pat Shanahan to employees, the businesses in Belfast and Prestwick, Scotland, that are not acquired by Airbus will be transferred to Boeing. According to the statement, Airbus will purchase the A220 wing production line in Belfast. If a suitable buyer cannot be found, Airbus will also take over the production of the A220 mid-fuselage. Additionally, Airbus will take over the production of wing components for the A320 and A350 models at the Prestwick facility.

Despite Boeing's previous consideration of repurchasing its former subsidiary, the agreement is being pushed forward as the aircraft manufacturer accelerates the recovery of its best-selling 737 MAX model following multiple crises in 2024 that caused production to decline. Spirit AeroSystems, the manufacturer of the 737 MAX fuselage, issued a warning about its ability to continue operating last year and received financial assistance from both Boeing and Airbus.

Spirit AeroSystems, based in Wichita, Kansas, disclosed in February that its total liquidity was $8.9 billion. However, it is expected that free cash flow will be depleted by $6.5 billion to $7 billion in the first half of 2025 (the specific reason was not disclosed). Airbus's Chief Financial Officer, Thomas Enders, stated in a letter to shareholders that the company expects to complete the transaction with Spirit by the end of April, while the comprehensive agreement with Boeing is expected to be finalized in the third quarter.