Airbus SE (OTC:EADSF) has agreed to take over assets owned by Spirit Aerosystems Holdings Inc. (NYSE:SPR) in a boost to the manufacturer's acquisition by Boeing Co. (NYSE:BA).
What Happened: Airbus will acquire several of Spirit's assets across the globe as part of the deal, including a facility in Kinston, North Carolina, as well as another facility in France. Both facilities manufacture crucial fuselage sections for Airbus's A350 aircraft, Spirit announced in an official statement on Monday.
Others include a facility in Casablanca, Morocco, where the company manufactures A321 and A220 components, as well as parts of facilities in Belfast, Scotland, and Wichita.
The deal stipulates that if no other suitable buyers are found, Airbus will also acquire assets in Subang, Malaysia, related to Airbus programs.
"For many years, Spirit’s collaboration with Airbus allowed us to deliver aerostructures for some of their most important aircraft programs," said Irene Esteves, Executive VP and CFO at Spirit. She added that this deal will be a boost for the company’s acquisition by Boeing.
Airbus will provide Spirit with a $200 million non-interest-bearing credit line, while Spirit will hand over $439 million to Airbus for the assets.
Why It Matters: The sale of assets clears the way for the Spirit's acquisition by Boeing, which was announced last year, with Boeing paying $4.7 billion after months of negotiations. It's worth noting that Spirit spun off from Boeing in 2005.
The deal with Airbus can also be a boost for Boeing, which is reeling from the effects of the ongoing U.S.-China trade war after the CCP announced a halt on all imports of aircraft made by Boeing into the country.
Boeing also recently secured a deal for crucial fastening components like nuts and bolts for its best-selling 737 Max model, production of which could've been affected had the manufacturer not replenished its stocks.
Price Action: BA is currently trading for $177.95, according to Benzinga Pro data.
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