Boeing has announced plans to buy back Spirit AeroSystems, a manufacturer of parts for its 737 and 787 planes, in a $4.7 billion all-stock deal. The acquisition is aimed at improving the production of Boeing’s aircraft and bringing Spirit Aero back into Boeing’s fold, which was previously a Boeing subsidiary before being spun off in 2005.
The deal comes amid ongoing safety concerns at Boeing, following a series of manufacturing issues that have affected the aviation industry. Boeing’s stock has fallen more than 27% this year due to these concerns, including a door plug blowing out mid-flight on a 737 MAX 9 jet earlier in the year.
In addition to the acquisition of Spirit Aero, Boeing is also in talks with the Justice Department about a potential plea deal to resolve fraud charges. The charges are related to violations of a deferred prosecution agreement following two fatal crashes involving Boeing planes in 2018 and 2019.
Spirit AeroSystems’ Europe-focused operations will be sold to Airbus as part of the agreement. The acquisition is set to be officially announced on Monday, pending approval from regulators and other stakeholders.