Jane Edwards
Boeing initially planned to reacquire Spirit AeroSystems in an all-cash transaction but made a last-minute move by proposing to fund its purchase of the aircraft parts manufacturer using mostly company stock, The Wall Street Journal reported Monday.
According to people familiar with the negotiation, the two parties discussed a deal in which Boeing would acquire about two-thirds of Spirit’s parts supply business by paying more than $4 billion.
The deal will also require Spirit to divest operations that produce parts for Airbus. Spirit’s manufacturing facilities in North Carolina and Belfast, North Ireland, make parts for Airbus and other defense companies.
Sources told WSJ that the terms of the deals are still being ironed out.
Boeing sold its Wichita, Kansas-based division to investment firm Onex in 2005, resulting in the formation of Spirit AeroSystems.
