Airbus to Receive $559 Million Compensation in Spirit AeroSystems Deal
By Kimberley Kao
Airbus will acquire several production assets of Spirit AeroSystems with the help of a $559 million compensatory payment, part of a broader plan related to rival Boeing's acquisition of Spirit.
Airbus said Monday that it will receive payment from Spirit to cover the European plane maker's acquisition of Spirit businesses in Kansas, North Carolina, France, Northern Ireland and Morocco focused on the production of fuselage sections, wing and other components of Airbus A350 and A220 jets.
The deal, which is subject to due diligence, came as Boeing unveiled its acquisition of Spirit that values the Kansas-based jet-parts maker at $4.7 billion. As part of Boeing's acquisition, Spirit is expected to shed factories, including in Europe, that make parts for Airbus, and divest of certain operations that support Airbus programs.
Airbus said its deal would help ensure the stability of aircraft supply in "a more sustainable way...both operationally and financially" for the various Airbus work packages undertaken by Spirit up until now.
Write to Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
July 01, 2024 03:19 ET (07:19 GMT)
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