sanfel/iStock Editorial via Getty Images
This article was updated at 12:25 am ET on July 1 to indicate both companies have confirmed the deal.
Boeing (NYSE:BA) agreed to acquire Spirit AeroSystems (NYSE:SPR) for $37.25 a share in an all-stock deal, the two companies said shortly after midnight Monday in separate news releases.
The deal values the supplier of fuselages, or the main bodies of airplanes, at more than $4.7 billion, Boeing said. Including Spirit debt, the total transaction value is approximately $8.3 billion.
Spirit said that it entered into a binding term sheet with Airbus SE (OTCPK:EADSF) that calls for the companies to enter into agreements for Airbus (OTCPK:EADSY) to acquire some Spirit assets that support Airbus programs, along with the closing of its acquisition by Boeing.
Boeing this year said it wanted to acquire Spirit to gain more control over its supply chain amid ongoing safety issues.
The acquisition would effectively reverse Boeing's spinoff of Spirit in 2005 as a separate publicly traded company. At that time, Boeing (BA) had sought to cut costs by outsourcing the assembly of fuselages and other parts.
Boeing this year has faced greater scrutiny from aviation authorities and lawmakers after a mid-flight blowout of a door panel on a 737 Max 9 in January. The aviation giant took subsequent steps to revamp its safety procedures with the aim of increasing plane output eventually.
The National Transportation Safety Board is investigating the blowout incident, and will hold an investigative hearing on August 6-7.
Separately, the U.S. Department of Justice is urging Boeing to plead guilty to a criminal charge after finding the aviation giant violated a settlement over fatal 737 Max crashes in 2018 and 2019 that killed 346 people, according to a news report.