Boeing has announced its acquisition of Spirit AeroSystems in a $4.7 billion all-stock deal, aiming to address quality and safety concerns. The purchase marks the end of Boeing's nearly two-decade outsourcing experiment and is expected to allow Boeing to better monitor and improve production practices. The deal, subject to regulatory and shareholder approval, includes the spin-off of portions of Spirit to Airbus. Boeing expects the acquisition to close by mid-2025. The move comes as Boeing faces scrutiny from the US Department of Justice for violating FAA regulations. The acquisition is seen as a significant step in demonstrating Boeing's commitment to strengthening quality and aligning production and safety systems with its workforce. The deal is also expected to give Boeing work on key programs from its main competitors in the defense space, including the B-21 bomber, CH-53K heavy lift helicopter, and the V-280 Valor rotorcraft. However, the acquisition comes amid ongoing challenges for Boeing, including the recent incident where a panel blew out of one of its planes on a flight in January. The company is also under pressure from the US Justice Department, which plans to charge Boeing with criminal fraud for violating a 2021 deferred-prosecution agreement. Experts have expressed mixed views on the acquisition. While some believe it will lead to improvements in quality and safety, others have criticized Boeing's CEO and the FAA for their roles in the company's recent issues. Additionally, concerns have been raised about the relatively small penalty Boeing faces for its 737 Max crashes, with the Justice Department's actions being seen as a departure from its usual practices. Overall, the acquisition of Spirit AeroSystems represents a significant strategic move for Boeing, with potential implications for its production capabilities, quality control, and relationships with competitors in the defense industry.
