Boeing has made a strategic decision to buy Spirit AeroSystems, a major supplier, in a deal valued at $8.3 billion. This move marks a significant shift for Boeing, which had previously outsourced production of key components for its commercial planes. By acquiring Spirit, Boeing aims to address quality issues that have plagued the supplier in recent years.
The purchase will allow Boeing to have more oversight and control over production practices, ultimately improving quality and safety standards. Boeing’s CEO, Dave Calhoun, expressed optimism about the integration of Spirit, believing that it will align production systems with the workforce.
Spirit AeroSystems, originally created in 2005 during Boeing’s outsourcing phase, also supplies components to other aerospace companies, including Airbus. Boeing’s offer of $37.25 per share represents a 30% premium over Spirit’s stock price before the acquisition talks began.
The acquisition comes amid quality concerns at both Boeing and Spirit. Spirit’s leadership underwent changes last fall, while Boeing faced scrutiny after an incident involving a panel on one of its planes. Boeing has since implemented various measures to enhance quality and safety standards, including increased training and inspections.
Boeing’s focus on reducing defects and streamlining production has already shown positive results. Elizabeth Lund, a top Boeing quality executive, highlighted the benefits of these changes, emphasizing improved efficiency and assembly processes.
Despite challenges, Boeing remains committed to enhancing its manufacturing practices and ensuring compliance with industry standards. The acquisition of Spirit AeroSystems signals a new chapter for Boeing as it seeks to strengthen its position in the aerospace industry.
