Boeing is set to buy back Spirit AeroSystems, a manufacturer of parts for its 737 and 787 planes, in a $4.7 all-stock deal, according to a Sunday report from Reuters.
The deal follows months of negotiations between the two aerospace companies and is intended to help address Boeing’s ongoing safety crisis, the outlet reported.
Boeing’s stock has tumbled more than 27% this year following a series of manufacturing issues that have rippled through the aviation industry. In January, a door plug on a new 737 MAX 9 jet blew out mid-flight, prompting intense scrutiny of Boeing’s manufacturing process.
Subsequent safety reviews of United Airlines and Alaska Airline’s fleets of Boeing 737 Max 9 planes found “many” loose bolts, Business Insider previously reported.
United, in a January statement to BI, said the loose bolts were related to the door plug — which was manufactured by Spirit Aero.
Spirit Aero was a Boeing subsidiary before it was spun off in 2005. The acquisition deal brings Spirit Aero back into Boeing’s fold, and is meant to improve aircraft production, Reuters reported.
The deal, which is set to be officially announced on Monday, Reuters reported, will result in Spirit Aero’s Europe-focused operations being sold to Airbus, a Boeing competitor. Boeing would take over the rest of the company, per Reuters.
Representatives for Boeing, Spirit AeroSystems, and Airbus did not immediately respond to requests for comment from BI sent outside standard business hours.
Amid the negotiations with Spirit Aero, Boeing is also in talks with the Justice Department about a plea deal to resolve the DOJ’s plans to charge Boeing with fraud. The looming charges come after officials found Boeing violated a deferred prosecution agreement related to two fatal crashes in 2018 and 2019.
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