EuropeanAirbusAirbus and Spirit AeroSystems both said on Monday,airbusA deal has been finalized to acquire some assets from Spirit Aerospace Systems, completing the embattled supplier's transatlantic struggle to be replaced by Airbus and its U.S. rivalsboeingA key step in carving up the company.
The U.S. planemaker last year agreed to buy back the aerospace structural components giant it spun off two decades ago for $4.7 billion in stock, while Airbus moves to take over the supplier's Europe-focused, loss-making business.
The two key plants involved in the asset transfer are a plant in Kingston, North Carolina, where Spirit Aviation Systems (SPR) produces key components for the Airbus A350 fuselage; and a plant in Belfast, Northern Ireland, which produces carbon fiber wings for the Airbus A220.
"Reaching this agreement is an important milestone as we work toward Boeing's goal of completing the acquisition, which will be beneficial to Spirit Aviation Systems, its shareholders and other stakeholders." said Erin Esteves, Chief Financial Officer of Spirit Aviation Systems.
Spirit Aviation Systems Holdings, Inc. headquarters in Wichita, Kansas
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As part of the deal, Airbus will provide Spirit Aviation Systems with an interest-free credit line worth $200 million, the companies said in separate statements. Meanwhile, Airbus said it will be paid $439 million by Spirit Aviation Systems in compensation.
Letters sent to employees this month by Boeing Commercial Airplanes CEO Stephanie Pope and Spirit Aerospace Systems CEO Pat Shanahan showed that parts of the Belfast business and operations at a plant in Prestwick, Scotland (not acquired by Airbus) will be owned by Boeing (BA).
Airbus will acquire the A220 wing production business in Belfast, Spirit Aviation Systems said in a statement. Airbus will also take over production of the A220 mid-fuselage if it cannot find a suitable buyer.
Meanwhile, Airbus said it would acquire the business that makes A320 and A350 wing components in Prestwick, Scotland.
While Boeing has previously considered buying back the spinoff unit, moving forward with the decision comes as it ramps up production of its best-selling 737 MAX jet after a series of crises that hit output in 2024.
Spirit Aviation Systems, which makes the fuselage for the 737 MAX, cast doubt last year on its ability to stay afloat when it received financial aid from two planemakers.
Wichita, Kan.-based Spirit Airlines said in February that it had total financial liquidity of $890 million but expected to burn through $650 million to $700 million of free cash flow in the first half of 2025, although it did not explain that.
Airbus Chief Financial Officer Thomas Teufel told shareholders earlier this month that the company expects to finalize its agreement with Spirit Aviation Systems by the end of April. The entire deal with Boeing is expected to close in the third quarter.