https://sputnikglobe.com/20240701/boeing-purchasing-spirit-aerosystems-for-47bln-amid-criminal-fraud-charges-1119204199.html
Boeing Purchasing Spirit AeroSystems for $4.7Bln Amid Criminal Fraud Charges
Boeing Purchasing Spirit AeroSystems for $4.7Bln Amid Criminal Fraud Charges
Sputnik International
Boeing on Monday announced a $4.7 billion acquisition of its supplier Spirit AeroSystems Holdings to coordinate commercial production systems, including safety and quality management.
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2024-07-01T09:42+0000
2024-07-01T09:42+0000
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Earlier in the day, a source told Sputnik that the US Department of Justice is planning to charge Boeing with fraud over its alleged breach of a 2021 deferred prosecution agreement. By reintegrating Spirit, Boeing is expected to be able to fully align workforce, commercial production systems, including safety and quality management "to the same priorities, incentives and outcomes – centered on safety and quality," Boeing President and CEO Dave Calhoun was quoted as saying. Boeing's acquisition of Spirit will include all Boeing-related commercial operations and additional commercial, defense and aftermarket operations, the statement said. Both entities will work together to "ensure the continuity of operations supporting Spirit's customers and programs it acquires," including working with the US Department of Defense and Spirit defense customers on defense and security missions, the statement read. In May, the Justice Department notified Boeing it was subject to criminal prosecution after it had determined that the company breached a 2021 agreement between them to avoid criminal charges for the two fatal 737 MAX crashes that occurred in 2018 and 2019. Under the agreement, Boeing paid $2.5 billion in penalties and vowed to improve its safety and compliance protocols. However, federal prosecutors recently recommended to senior Justice Department officials that Boeing be prosecuted for failing to improve the safety of its aircraft after a series of mishaps this year, including a door panel that blew off an Alaska Airlines flight shortly after takeoff, a source familiar with the matter told Sputnik. Boeing aircraft has encountered safety and quality issues in recent years. In January, the US Federal Aviation Authority temporarily grounded all Boeing 737 Max 9 planes in the United States after a door panel blew out on an Alaska Airlines flight. The same month, US Secretary of State Antony Blinken's Boeing 737 was grounded in Davos, Switzerland due to an oxygen leak, forcing him to board an alternate aircraft to return to the US. On April 3, his plane was grounded again in Paris due to a mechanical issue.
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spirit aerosystems, spirit aerosystems holdings, boeing, commercial production systems
spirit aerosystems, spirit aerosystems holdings, boeing, commercial production systems
Boeing Purchasing Spirit AeroSystems for $4.7Bln Amid Criminal Fraud Charges
MOSCOW (Sputnik) - Boeing on Monday announced a $4.7 billion acquisition of its supplier Spirit AeroSystems Holdings to coordinate commercial production systems, including safety and quality management.
Earlier in the day, a source told Sputnik that the
US Department of Justice is planning to charge Boeing with fraud over its alleged breach of a 2021 deferred prosecution agreement.
"Boeing [NYSE: BA] today announced it has entered into a definitive agreement to acquire Spirit AeroSystems [NYSE: SPR]. The merger is an all-stock transaction at an equity value of approximately $4.7 billion, or $37.25 per share. The total transaction value is approximately $8.3 billion, including Spirit's last reported net debt," the company said in a statement.
By reintegrating Spirit, Boeing is expected to be able to fully align workforce, commercial production systems, including safety and quality management "to the same priorities, incentives and outcomes – centered on safety and quality," Boeing President and CEO Dave Calhoun was quoted as saying.
Boeing's acquisition of Spirit will include all Boeing-related commercial operations and additional commercial, defense and aftermarket operations, the statement said. Both entities will work together to "ensure the continuity of operations supporting Spirit's customers and programs it acquires," including working with the US Department of Defense and Spirit defense customers on defense and security missions, the statement read.
"The transaction is expected to close mid-2025 and is subject to the sale of the Spirit operations related to certain Airbus commercial work packages and the satisfaction of customary closing conditions, including regulatory and Spirit shareholder approvals," the statement added.
In May, the Justice Department notified Boeing it was subject to criminal prosecution after it had determined that the company breached a 2021 agreement between them to avoid criminal charges for the two fatal 737 MAX crashes that occurred in 2018 and 2019. Under the agreement, Boeing paid $2.5 billion in penalties and vowed to improve its safety and compliance protocols.
However, federal prosecutors recently recommended to senior Justice Department officials that Boeing be prosecuted for failing to improve the safety of its aircraft after a series of mishaps this year, including a door panel that blew off an Alaska Airlines flight shortly after takeoff, a source familiar with the matter told Sputnik.
Boeing aircraft has encountered safety and quality issues in recent years. In January, the US Federal Aviation Authority temporarily grounded all Boeing 737 Max 9 planes in the United States after a door panel blew out on an Alaska Airlines flight. The same month, US Secretary of State Antony Blinken's
Boeing 737 was grounded in Davos, Switzerland due to an oxygen leak, forcing him to board an alternate aircraft to return to the US. On April 3, his plane was grounded again in Paris due to a mechanical issue.
