Airbus SE has entered into a ‘binding term sheet agreement’ with
Spirit AeroSystems in relation to a potential acquisition of major activities related to Airbus, notably the production of: the A220’s wings and mid-fuselage in Belfast (Northern Ireland) and Casablanca (Morocco); A220 pylons in Wichita, Kansas (USA); and A350 fuselage sections in Kinston, North Carolina (the USA) and St Nazaire (France).
Airbus says that with this agreement, the company aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward — both operationally and financially — for the various Airbus work packages that Spirit AeroSystems is responsible for today.
The transaction would cover the acquisition of these activities and see Airbus compensated by payment of $559 million from Spirit AeroSystems, for a ‘nominal consideration of $1’. This is subject to adjustments including those based on the final transaction perimeter.
Entering into definitive agreements remains subject to an ensuing due diligence process; and while there is no guarantee that a transaction will be concluded, all parties are willing and interested to work in good faith to progress and complete this process as timely as possible.
This development coincides with Boeing and Spirit AeroSystems having entered into a definitive agreement for the former to purchase the latter in an all-stock transaction priced at £4.7 billion; but with Boeing also assuming Spirit AeroSystems net debt, this increases the price of the transaction to $8.3 billion.