#United States #Wichita #Boeing #Airbus #Spirit AeroSystems

Spirit AeroSystems Enters Definitive Agreement with Airbus

On April 28, 2025, Spirit AeroSystems Holdings, Inc. announced a pivotal agreement with Airbus SE to transfer ownership of vital aerostructure assets. This landmark deal plays a significant role as Spirit prepares for its previously announced acquisition by Boeing, which is also expected to finalize in the third quarter of 2025, pending regulatory approvals.

Key Details of the Divestiture

The agreement includes a transfer of several production sites and assets critical to Airbus’s aerostructure operations. The sites involved in this transfer include:

• - Kinston, North Carolina (A350 fuselage sections)
• - St. Nazaire, France (A350 fuselage sections)
• - Casablanca, Morocco (components for A321 and A220)
• - Prestwick, Scotland (production of A320 and A350 wings)
• - Wichita, Kansas, U.S. (A220 pylons)
• - Belfast, Northern Ireland (A220 wings)

In a strategic move, if a suitable buyer isn’t found for the remainder of the Belfast facility, the production of the A220 mid-fuselage will also be included in the transaction. Additionally, assets located in Subang, Malaysia, relating to Airbus initiatives, will be part of the deal, contingent on finding an appropriate buyer before the transaction’s closure.

Statements from Leadership

Irene Esteves, Executive Vice President and Chief Financial Officer of Spirit AeroSystems, expressed, "For many years, Spirit's collaboration with Airbus allowed us to deliver aerostructures for some of their most vital aircraft programs. This agreement represents a crucial milestone in our ongoing efforts toward closing our acquisition with Boeing, ultimately benefiting Spirit, its shareholders, and stakeholders."

Financial Support from Airbus

Moreover, the agreement encompasses a memorandum detailing that Airbus will offer Spirit non-interest-bearing lines of credit totaling $200 million. This funding is intended to assist Spirit in supporting various Airbus programs, thus strengthening their collaborative relationship further.

Behind the Scenes

The transition has been facilitated through financial advisement from Morgan Stanley & Co. LLC, acting as lead financial advisor, while the legal frameworks have been guided by Skadden, Arps, Slate, Meagher & Flom LLP.

Spirit, headquartered in Wichita, Kansas, stands as a key player in the global market for aerostructures, serving commercial, defense, and business aviation sectors. With decades of expertise in aluminum and advanced composite manufacturing, it provides a wide array of products including fuselages, integrated wings, pylons, and nacelles, ensuring its place as a reliable supplier to both military and civilian aviation sectors.

A Look Ahead

The financial figures and strategic positioning provided by the agreements emphasize the competitive landscape within the aerospace industry and the critical nature of regulatory compliance and market dynamics. As Spirit moves forward with these transactions, stakeholders will have to keep a close eye on the evolving landscape of aerospace manufacturing and the integration processes following the acquisitions.

As the completion of both the divestiture and the acquisition approaches, there lies an array of potential impacts on Spirit's operational capabilities, market standing, and overall business strategy. Investors and industry watchers alike are anticipating how these transformative agreements will unfold in the coming quarters, especially in light of the anticipated integration with Boeing and the resultant operational synergies.

In conclusion, Spirit AeroSystems’ agreements with Airbus not only signify critical steps for the company but also underscore the dynamic changes in the aerospace and defense sectors, further enhancing its competitive stature within a continually evolving global market.