DRB-Hicom to acquire Spirit Aerosystems Malaysia for $95.2mln, enhancing aerospace industry position.

DRB-Hicom proposes to acquire Spirit Aerosystems Malaysia for $95.2mln, with the deal expected to be funded through bank borrowings. The acquisition will enhance the conglomerate's competitive position in the aerospace industry, improve scale and efficiency, and deepen relationships with global OEMs. It aligns with Malaysia's efforts to strengthen its position as a regional aerospace hub under the New Industrial Master Plan 2030.

Spirit AeroSystems has agreed to sell its facility and businesses in Subang, Malaysia, to Composites Technology Research Malaysia (CTRM) for $95.2 million. The deal, expected to close in the fourth quarter of 2025, marks a significant milestone in Spirit's ongoing acquisition by Boeing and aligns with Malaysia's strategic efforts to strengthen its position as a regional aerospace hub under the New Industrial Master Plan 2030 [1][2].

The Subang facility, which employs over 1,000 employees, specializes in aerostructures assembly and offers integrated supply chain capabilities, including access to in-region material sourcing and skilled labor. With this acquisition, CTRM will become a key supplier to Airbus for its A220, A320, and A350 programs, as well as to Boeing for its 737 and 787 programs. This strategic move is expected to enhance CTRM's competitive position in the aerospace industry and improve scale and efficiency [1][2].

The sale is part of Spirit's broader strategy to focus on its core competencies and streamline its operations. The company, one of the world's largest manufacturers of aerostructures, has been undergoing a series of transactions aimed at strengthening its financial position and aligning its operations with its long-term growth strategy. The sale of the Malaysia facility is part of this broader effort [1][2].

The acquisition will be funded through bank borrowings, indicating a strong financial commitment from the acquiring entity. This move is also seen as a positive step for Malaysia's aerospace industry, as it aligns with the country's efforts to develop a robust and competitive aerospace sector under the New Industrial Master Plan 2030 [1][2].

References:
[1] https://www.marketwatch.com/story/spirit-aerosystems-to-sell-malaysia-facility-to-ctrm-for-95-2m-f7709bf3
[2] https://www.prnewswire.com/news-releases/spirit-aerosystems-announces-definitive-agreement-with-ctrm-for-acquisition-of-facility-in-subang-malaysia-302525585.html