Boeing may still complete the acquisition of Spirit AeroSystems by mid-year | News

Boeing continues to work to finalize its acquisition of 737 fuselage maker Spirit AeroSystems, and the companies could reach an agreement before the end of June.

That’s according to Boeing’s chief financial officer, Brian West, who on May 23 reaffirmed Boeing’s intention to buy a supplier struggling with financial and operational difficulties, saying that Boeing – which itself is struggling with similar problems – is confident that the companies will be stronger together.

“I still believe we will be able to sign something in the second quarter, but it is a large and complex (deal) and we will not rush it,” West says during an investor conference organized by Wolfe Research. “Spirit and Boeing believe that reintegrating this business is important on many fronts.”

In March, Boeing revealed interest in acquiring Wichita-based Spirit, saying it would help solve quality problems that have long plagued the key supplier. In 2005, Boeing sold the company, which changed its name to Spirit.

The discussions come as Boeing has come under intense scrutiny after a door explosion on an Alaska Airlines 737 Max 9 in January.

Spirit is delivering 737 fuselages – with door plugs installed – to Boeing in Renton. Investigators say Boeing workers had to remove a plug from the Alaska plane’s door during the assembly process to allow Spirit workers to address a problem with the fuselage rivet. Boeing workers replaced the plug, but apparently did not screw it in place.

Analysts have mixed views on whether Spirit’s quality problems could be better resolved if Boeing acquired it. But they agree that such an acquisition would be complicated because Spirit produces major aircraft components for other customers, including Airbus.

Analysts suspect Spirit will likely have to divest some or all of that other business as a condition of buying Boeing.

Asked on May 23 about potential divestitures, West said only that Boeing needed to give Spirit time to pursue its work with other customers.

“We really believe in the strategic rationale for this transaction,” he adds.

Spirit did not immediately respond to a request for comment.