Airbus aims for security of supply with acquisition of Spirit AeroSystems assets

Airbus, the European aerospace giant, has taken a significant step towards securing its supply chain for key commercial aircraft programmes, in particular the Airbus A220 and Airbus A350 production lines.

The Company announced a binding agreement with Spirit AeroSystems, a leading player in the aerospace industry, under which it will acquire certain product lines.

Airbus’ announcement follows reports that Boeing has reacquired Spirit AeroSystems in a deal worth $8.3 billion.

Who is Spirit AeroSystems?

Spirit AeroSystems, based in Wichita, Kansas, is a leading manufacturer of aerostructures for commercial airplanes, defense platforms and business/regional jets.

They specialise in manufacturing key aircraft components such as fuselages, wings and pylons, using both aluminium and advanced composite materials.

Spirit boasts a global presence with facilities in the United States, Europe and North Africa.

It is worth noting that their plant in Belfast, Northern Ireland produces the wings and centre fuselage of the Airbus A220.

This partnership underlines the well-established cooperation between the two companies.

Targeted acquisitions to gain strategic advantage

The purpose of this strategic acquisition is to take over Spirit’s production capabilities for key components directly related to Airbus programmes.

These include Airbus A350 fuselage sections, Airbus A220 wings and centre fuselage, and A220 pylons.

The agreement covers facilities in the United States (Kinston, North Carolina and Wichita, Kansas), France (St. Nazaire), Northern Ireland (Belfast) and Morocco (Casablanca).

Airbus focuses on stability

Airbus stresses that the move aims to provide a “more sustainable way forward” for its commercial aircraft programmes.

The company is seeking greater supply chain stability, likely due to past manufacturing issues or a desire to gain more direct control over these key components.

Financial details reveal that Spirit paid Airbus $559 million, with a symbolic interest rate of just $1.

However, the final price may change depending on the final scope of the transaction.

Next Steps: Due Diligence and Negotiation

While a binding term sheet paves the way, final agreements are still pending. Both parties must now complete the due diligence process.

This step will include a detailed analysis of Spirit’s assets and liabilities.

If everything goes smoothly and the appropriate regulatory approvals are obtained, the acquisition can be completed.

This development is evidence of Airbus’ proactive approach to securing its supply chain and potentially streamlining operations.

The coming months will show whether this planned acquisition will come to fruition and how it will change the situation in the aerospace industry.

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