Airbus SE ( EADSF ) has signed a binding term sheet with Spirit AeroSystems ( SPR ) Holdings Inc for a potential acquisition of key production activities, including A350 fuselage sections in Kinston, North Carolina, and St. Nazaire, France, as well as A220 components in Belfast, Northern Ireland, and Casablanca, Morocco.

The deal includes a compensation payment of $559 million to Airbus, with a nominal consideration of $1.00, subject to adjustments based on the final transaction details.

The agreement aims to stabilize supply chains for Airbus’s commercial aircraft programs, providing a more sustainable operational and financial framework for the work packages currently managed by Spirit AeroSystems ( SPR ).

The deal is a part of a broader division of the supplier between Airbus and its competitor Boeing ( BA ) Co , reported Reuters.

Also Read: Airbus Warns Of Aircraft Delivery Delays Through 2026: Report

The compensation mechanism is based on the financial state of the activities Airbus is acquiring from Spirit, which is selling other parts of the company back to Boeing ( BA ).

Airbus stated that the deal aims to ensure a stable supply for its commercial aircraft programs through a more sustainable operational and financial model.

Last week, Airbus reduced its delivery and production forecasts, emphasizing the need for this strategic move.

Airbus will assume minor activities for the A220 in Wichita, Kansas, where Spirit’s headquarters are based. The deal is pending due diligence, Airbus confirmed.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Next:

Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report