Boeing has finalized its acquisition of Spirit AeroSystems for a total of $4.7 billion, a significant move that reabsorbs a vital supplier of airplane structures. This deal, approved by the Federal Trade Commission on December 3, 2023, enables Boeing to take control of Spirit’s operations related to its commercial and defense aircraft, including the KC-46 and B-21.
The acquisition encompasses all of Spirit’s Boeing-related activities, notably fuselage construction for popular models like the Boeing 737. This strategic decision not only strengthens Boeing’s supply chain but also allows the company to maintain Spirit Defense as a “non-integrated” subsidiary under its defense unit. According to Boeing, this will facilitate financial reporting while preserving Spirit’s independent governance and operations.
Spirit Defense will continue to supply components to Boeing’s competitors in the defense sector, including Northrop Grumman, which utilizes Spirit’s aerostructures for the B-21 bomber. Boeing CEO Kelly Ortberg remarked, “This is a pivotal moment in Boeing’s history and future success as we begin to integrate Spirit AeroSystems’ commercial and aftermarket operations and establish Spirit Defense.” He emphasized the importance of stability during this transition to ensure high-quality airplane production and advanced defense capabilities.
Founded in 2005 after a spin-off from Boeing, Spirit AeroSystems has diversified its operations beyond its former parent company. During its time as an independent entity, Spirit expanded its defense sector, contributing to projects such as the B-21 bomber and the V-280 rotorcraft built by Bell. However, following the acquisition announcement, Bell decided to discontinue its collaboration with Spirit.
As part of the acquisition, Boeing plans to integrate approximately 15,000 employees from Spirit across five locations, including Wichita, Kansas; Dallas, Texas; Tulsa, Oklahoma; Belfast, Northern Ireland; and Prestwick, Scotland.
The FTC’s approval included specific conditions requiring Boeing to divest Spirit’s business dealings with its main competitor, Airbus, transferring those entities to the European manufacturer. Additionally, Boeing is mandated to divest Spirit’s aerostructures business in Malaysia, which supplies components to both Boeing and Airbus, to Composites Technology Research Malaysia.
Senator Jerry Moran, a Republican from Kansas and a member of the Senate Appropriations defense subcommittee, expressed his support for the acquisition. He stated, “Boeing’s acquisition of Spirit AeroSystems will help build bridges between Seattle and Wichita and bring new opportunities to the Air Capital of the World.” Moran looks forward to fostering a lasting relationship between Boeing and the Wichita community, enhancing collaboration with current and future suppliers.
This acquisition marks a significant chapter in Boeing’s efforts to consolidate its supply chain while positioning itself competitively in the aerospace and defense sectors. Through this strategic integration, Boeing aims to bolster its production capabilities and reinforce its commitment to delivering advanced aerospace solutions.
