Spirit AeroSystems Hands Over Key Airbus Programs In $439 Million Asset Transfer Deal

Spirit Aerosystems Holdings, Inc. SPR shares traded higher in the premarket on Monday following a definitive agreement with Airbus SE EADSY on Sunday to transfer ownership of specific assets and sites related to Airbus aerostructure production.

After the completion of this transaction, Airbus will assume ownership of the Spirit assets at the Kinston site in North Carolina, U.S. (A350 fuselage sections), the St. Nazaire site in France (A350 fuselage sections) and the Casablanca site in Morocco (A321 and A220 components).

The assets also include the production of A320 and A350 wing components in Prestwick, Scotland, the production of A220 pylons in Wichita, Kansas, U.S., and the production of A220 wings in Belfast, Northern Ireland.

Spirit AeroSystems plans to sell its Subang, Malaysia site to a third party.

If no suitable buyer is found, Airbus will also take ownership of the production of the A220 mid-fuselage at the Belfast site.

Additionally, the assets in Subang, Malaysia, related to Airbus programs will be acquired by Airbus if no suitable buyer is identified before the transaction closes.

The compensation amount has been revised to reflect this updated transaction scope, consistent with the binding term sheet agreement announced on July 1, 2024.

As part of the deal, Spirit AeroSystems will pay Airbus $439 million, subject to certain closing adjustments.

Moreover, Airbus has signed a memorandum of agreement with Spirit AeroSystems, agreeing to provide non-interest-bearing lines of credit totaling $200 million to support Spirit AeroSystems’ work on Airbus programs.

This divestiture is expected to close alongside Spirit’s previously disclosed acquisition by The Boeing Company BA.

Both transactions are subject to regulatory approvals and other closing conditions, with an expected completion in the third quarter of 2025.

Investors can gain exposure to SPR via Gabelli Commercial Aerospace and Defense ETF GCAD.

Price Action: SPR shares are up 3.07% at $35.96 premarket at the last check Monday.

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