Boeing Completes $4.7 Billion Acquisition of Spirit AeroSystems

Boeing has finalized its acquisition of Spirit AeroSystems for a substantial $4.7 billion, effectively reabsorbing a major supplier of aircraft components. This strategic move allows Boeing to take control of Spirit’s operations that produce essential structures for commercial and defense aircraft, including the KC-46 and B-21. The Federal Trade Commission approved the acquisition on December 3, 2023, paving the way for Boeing to integrate Spirit’s capabilities.

Under the terms of the acquisition, Boeing will oversee all Boeing-related operations of Spirit, which includes the manufacturing of fuselages for the widely used Boeing 737. This aircraft serves not only commercial purposes but also underpins military models such as the P-8A Poseidon maritime patrol aircraft. Moving forward, Spirit Defense will operate as a “non-integrated” subsidiary within Boeing’s defense division. This structure aims to align financial reporting and select enterprise functions while allowing Spirit to maintain independent governance and operations.

Boeing’s CEO, Kelly Ortberg, described this moment as pivotal for the company’s future. “As we welcome our new teammates and bring our two companies together, our focus is on maintaining stability so we can continue delivering high-quality airplanes, differentiated services, and advanced defense capabilities for our customers and the industry,” he stated.

Spirit AeroSystems, which was originally spun off from Boeing in 2005, has made significant strides in diversifying its operations beyond its former parent company. During its independence, Spirit expanded its defense sector, contributing to projects like the B-21 bomber developed by Northrop Grumman and the V-280 rotorcraft produced by Bell. However, following the announcement of Boeing’s acquisition, Bell chose to sever ties with Spirit.

Approximately 15,000 employees will be added to Boeing’s workforce as a result of this acquisition, with operations spanning five locations: Wichita, Kansas; Dallas, Texas; Tulsa, Oklahoma; Belfast, Northern Ireland; and Prestwick, Scotland.

As a condition for the FTC’s approval, Boeing will divest all businesses Spirit conducted with its main competitor, Airbus, which will take over those entities. Additionally, the company is required to offload Spirit’s aerostructures business in Malaysia, which supplies components to both Boeing and Airbus, to Composites Technology Research Malaysia.

In response to the acquisition, Senator Jerry Moran of Kansas, who serves on the Senate Appropriations defense subcommittee, expressed his support. He emphasized the importance of this deal for fostering connections between Boeing’s headquarters in Seattle and Wichita. “I welcome Boeing back to Wichita and look forward to working with them to build a lasting relationship with the community and its workforce, as well as current and future suppliers,” he said.

This acquisition marks a significant chapter in Boeing’s history and reflects its commitment to enhancing its supply chain while maintaining a competitive stance in the aerospace industry.