Boeing Agrees to Buy Spirit AeroSystems, a Longtime Supplier

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Airplane fuselage assembly at Spirit AeroSystems.
Image via Spirit AeroSystems, Facebook.
Boeing is buying Spirit AeroSystems, a major supplier to the aerospace company.

Boeing has agreed to buy one of its major suppliers, Spirit AeroSystems, ending a practice begun two decades ago to outsource production of key parts to independent suppliers, writes Niraj Chokshi for The New York Times.

The hope is that that multibillion-dollar deal will end quality problems the aerospace giant has been experiencing in recent years

By assuming ownership, Boeing can more easily monitor and change production practices.

It has already taken internal step to improve product quality after a panel blew out on one of its planes mid-flight in January

“By reintegrating Spirit,” Boeing’s chief executive, Dave Calhoun, said in a statement, the company “can fully align” its production and safety systems with its work force.

The deal was valued at $4.7 billion in stock or $8.3 billion including Spirit’s debt. It must still be approved by regulators and Spirit’s shareholders.

The transaction includes Boeing spinning off portions of Spirit to Airbus, its European rival.

The acquisition of Spirit should close by the middle of next year.

Boeing operates a plant in Ridley manufacturing military aircraft, specifically the Chinook helicopter and the V-22 Osprey.

Read more about the implications of Boeing’s purchase of Spirit AeroSystems in The New York Times.


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