CA - Boeing: Integrating Fuselages With Spirit AeroSystems

2024-07-01 16:20:12 ET

Summary

• The Boeing Company announced the long-awaited acquisition of Spirit AeroSystems to regain control over production and quality, adding operating losses, debt, and dilution for shareholders.
• The all-stock deal is valued at $4.7 billion, with Boeing assuming another $3.6 billion in net debt, offering salvation for investors in Spirit.
• Boeing's struggles include cash burn, debt accumulation, pandemic impact, quality issues, and CEO change, with recovery still uncertain despite the acquisition.

The Boeing Company ( BA ) started July with a big move, as it announced the purchase of Spirit AeroSystems ( SPR ) to regain control over its production, but moreover quality control issues. The deal will give Boeing more control, but at the same time add some operating losses, more debt and dilution for shareholders as well....

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