07:12 AM EDT, 07/01/2024 (MT Newswires) -- Boeing ( BA ) will acquire Spirit AeroSystems ( SPR ) in an $8.3 billion deal that would reverse their 2005 separation as the troubled aircraft manufacturer continues its quality and safety improvement efforts.

The all-stock transaction values Spirit AeroSystems ( SPR ) at $37.25 per share, or $4.7 billion. The total value of roughly $8.3 billion includes Spirit's last reported net debt, according to a statement Monday.

In the deal, investors of Spirit will receive between 0.18 and 0.25 share of Boeing ( BA ) for each share they own in the company, depending on the volume weighted average share price of the plane maker's common stock over a certain period before the deal closes. Shares of Spirit AeroSystems ( SPR ) rose 6.6% in premarket activity, while Boeing ( BA ) decreased 1.1%.

Spirit AeroSystems ( SPR ) was formed after Boeing ( BA ) spun off its operations in Wichita, Kansas, and Oklahoma in 2005. For the first-quarter ended March 28, about 71% of Spirit's commercial segment revenue came from its contracts with Boeing ( BA ), up from 70% the year before, a regulatory filing showed. Spirit reported mixed quarterly financial results in May and didn't issue a full-year outlook due to acquisition talks with Boeing ( BA ) at the time.

"By reintegrating Spirit, we can fully align our commercial production systems, including our safety and quality management systems, and our workforce to the same priorities, incentives and outcomes -- centered on safety and quality," Boeing ( BA ) Chief Executive Dave Calhoun said in a statement.

The deal includes substantially all of Spirit's Boeing ( BA )-related commercial operations, as well as additional commercial, defense and aftermarket operations. It's expected to close in the middle of next year.

"After carefully evaluating Boeing's ( BA ) offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders, and will benefit Spirit's other stakeholders," Spirit CEO Patrick Shanahan said. "Bringing Spirit and Boeing ( BA ) together will enable greater integration of both companies' manufacturing and engineering capabilities, including safety and quality systems."

In a separate statement, European aircraft manufacturer Airbus said it entered into a binding term sheet agreement with Spirit AeroSystems ( SPR ) to take over some production assets with a $559 million compensatory payment by the latter. The companies aim to negotiate further to strike a definitive deal, which includes major activities carried out by Spirit AeroSystems ( SPR ) for the fuselage sections, wing and other components of Airbus A350 and A220 jets in North Carolina, France, Northern Ireland and Morocco.

"Airbus aims to ensure stability of supply for its commercial aircraft programs through a more sustainable way forward, both operationally and financially, for the various Airbus work packages that Spirit AeroSystems ( SPR ) is responsible for today," the company said.

Spirit also proposed selling some operations in Northern Ireland that don't support Airbus programs, as well as business and operations in Scotland and Malaysia that support Airbus activities. Boeing's ( BA ) deal with Spirit is also subject to the sale of certain commercial work packages that Spirit AeroSystems ( SPR ) performs for Airbus.

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