- Boeing is buying Spirit Aero, a maker of parts for its 737 and 787 planes, according to Reuters.
- The $4.7 billion stock deal is expected to be officially announced Monday, the outlet reported.
- This agreement brings Spirit Aero back into the Boeing fold and is expected to improve production of its aircraft.
Boeing is set to buy Spirit AeroSystems, a maker of parts for its 737 and 787 jets, in a $4.7 all-stock deal, according to a Sunday report from Reuters.
The deal follows months of negotiations between the two aerospace companies and is aimed at helping resolve Boeing’s ongoing safety crisis, the outlet reported.
Boeing’s stock has fallen more than 27% this year following a series of manufacturing problems that have rippled across the aviation industry. In January, a door stopper on a new 737 MAX 9 jet exploded mid-flight, drawing scrutiny of Boeing’s manufacturing process.
Subsequent safety reviews of United Airlines and Alaska Airline’s Boeing 737 Max 9 aircraft fleets found “numerous” loose bolts, Business Insider previously reported.
United, in a statement to BI in January, said the loose bolts were related to the door plug, made by Spirit Aero.
Spirit Aero was a subsidiary of Boeing before it was spun off in 2005. The acquisition deal brings Spirit Aero back into the Boeing fold and aims to improve aircraft production, Reuters reported.
The deal, expected to be officially announced on Monday, Reuters reported, will result in the sale of Spirit Aero’s European operations to Airbus, a Boeing competitor. Boeing would take over the rest of the company, according to Reuters.
Representatives for Boeing, Spirit AeroSystems and Airbus did not immediately respond to BI’s requests for comment sent outside of normal business hours.
As part of the Spirit Aero negotiations, Boeing is also in talks with the Justice Department about a plea deal aimed at halting the DOJ’s plans to charge Boeing with fraud. The impending charges come after authorities found Boeing violated a deferred prosecution agreement related to two fatal crashes in 2018 and 2019.
