The interesting part of the deal is the parts spun off to Airbus. There are some minor components manufactured for Airbus jets, and then there's the A220 (formerly C-series), which as a designed by Bombardier plane, had production in the former Bombardier factories that were sold to Spirit. Most notably, the wings.<p>Airbus only needs the part of Spirit that relate to them, but Spirit's factories are not organised like that (e.g. the Northern Ireland complex that manufacturers the A220 wings also manufactures parts for Bombardier private jets). So it would be interesting exactly how Spirit, Boeing and Airbus split things up, and what the impact on workers and production will be.<p>Also, Airbus was asking to be paid for taking the parts of Spirit related to them because of their sorry state (the Northern Ireland site needs billions of investments, according to them). It's pretty funny if Boeing paid Airbus to take parts off Spirit so that Boeing can begin to try to fix their mistake from 20 years ago. Airbus are definitely making them a favour though (if they refuse, anti-competitive regulators will surely block the deal). So it's a win for Airbus, potential long term win for Boeing.<p>Edit: just read the FT's article on the topic, which is more detailed and covers those topics - Airbus will receive $559 million, and will take over Spirit factories in Northern Ireland, Morocco and France. Spirit will spin-off some other unrelated businesses, including other parts of the Northern Ireland facilities, which might be disastrous for the workforce there.<p>Article:
Boeing agrees to buy Spirit AeroSystems in $4.7bn deal - <a href="https://on.ft.com/3VMqoiL" rel="nofollow">https://on.ft.com/3VMqoiL</a> via @FT
FYI, Spirit was originally part of Boeing. They're walking back a strategy of outsourcing that is said to be one of the causes of their recent QC problems.
Spirit went public in 2006 at $26.00 per share, implying a $3.8bn market cap [1]. That’s about $40.50 ($5.9bn) today [2].<p>This deal is at $37.25 per share, implying a $4.7bn market cap and $8.3bn enterprise value [3]. Spirit’s shareholders got hosed; value was transferred to its lenders.<p>[1] <a href="https://www.seattletimes.com/business/spirit-aerosystems-gains-after-its-143-billion-ipo/" rel="nofollow">https://www.seattletimes.com/business/spirit-aerosystems-gai...</a><p>[2] <a href="https://www.usinflationcalculator.com/" rel="nofollow">https://www.usinflationcalculator.com/</a><p>[3] <a href="https://www.ft.com/content/c35beaff-03d3-4a55-89ff-8adce4e064ac" rel="nofollow">https://www.ft.com/content/c35beaff-03d3-4a55-89ff-8adce4e06...</a>
Outsourcing is lame, and unwinding outsourcing can cost you money to settle issues with other companies which depend on that outsource agent and have regulatory and competition concerns you have to respect.<p>Paying Airbus to take their bit of this, is .. well it's strange but then I guess not.<p>Boeing being Boeing, somebody got a massive KPI for making this outsource happen, then somebody else will get a massive KPI for unwinding it.