Boeing has finalized its acquisition of Spirit AeroSystems for approximately $4.7 billion, effectively reabsorbing a key supplier that provides essential components for both commercial and defense aircraft. The deal, which received approval from the Federal Trade Commission on December 3, 2023, enables Boeing to take control of Spirit’s operations related to its aircraft, including the fuselage construction for the widely used Boeing 737 and military planes such as the P-8A Poseidon.
As part of the acquisition, Spirit Defense will operate as a “non-integrated” subsidiary under Boeing’s defense division. This structure aims to align financial reporting and select functional support while preserving Spirit’s independent governance. Boeing emphasized that this arrangement allows Spirit to continue serving as a supplier to competitors in the aerospace defense sector, including Northrop Grumman, which utilizes Spirit’s aerostructures for its B-21 bomber.
“This is a pivotal moment in Boeing’s history and future success,” stated Boeing CEO Kelly Ortberg. He highlighted the importance of maintaining stability to ensure the delivery of high-quality airplanes and advanced defense capabilities. Ortberg expressed optimism about integrating Spirit AeroSystems and welcoming new employees as part of the transition.
Spirit AeroSystems, which was spun off from Boeing in 2005, has made significant strides in diversifying its operations beyond its former parent company. Notably, it has expanded its defense sector to include projects like the B-21 bomber and the V-280 rotorcraft produced by Bell. However, following the announcement of the acquisition, Bell decided to terminate its relationship with Spirit.
The acquisition will result in the addition of approximately 15,000 employees across five locations: Wichita, Kansas; Dallas, Texas; Tulsa, Oklahoma; Belfast, Northern Ireland; and Prestwick, Scotland.
In approving the acquisition, the FTC mandated that Boeing divest Spirit’s business dealings with its primary competitor, Airbus. This will involve transferring these operations to Airbus. Additionally, Boeing is required to divest Spirit’s aerostructures business in Malaysia, which supplies components to both Boeing and Airbus, to Composites Technology Research Malaysia.
Senator Jerry Moran of Kansas, a member of the Senate Appropriations defense subcommittee, voiced support for the acquisition, stating it would create new opportunities in the region. He remarked, “Boeing’s acquisition of Spirit AeroSystems will help build bridges between Seattle and Wichita,” and expressed eagerness to collaborate with Boeing to strengthen community ties and foster growth.
The completion of this acquisition marks a significant chapter for Boeing as it integrates Spirit AeroSystems, positioning itself to enhance its capabilities in both commercial aviation and defense sectors.
