Spirit says deal conditional on its sale of Airbus ops (Il Sole 24 Ore Radiocor) - New York, 01 Jul - Spirit said the definitive merger agreement with Boeing is subject to the completion of the divestiture of the Airbus businesses by Spirit and is subject to other closing conditions, including approval of the definitive merger agreement by Spirit shareholders and receipt of regulatory approvals.

In addition, Spirit plans to pursue the divestiture of certain operations, including its business and operations in Subang, Malaysia, Prestwick, Scotland that support Airbus programs, and Belfast, Northern Ireland other than those that support Airbus programs.

Spirit also signed a binding term sheet with Airbus in relation to the possible acquisition by the French aerospace company of major activities related to Airbus, notably the production of A350 fuselage sections in Kinston, North Carolina, US, and St. Nazaire, France of the A220's wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco, as well as of the A220 pylons in Wichita, Kansas, US.

"With this agreement, Airbus 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," Airbus said.

The transaction would cover the acquisition of these activities. Airbus will be compensated by payment of 559 million dollars from Spirit, for a nominal consideration of 1.00 dollar, subject to adjustments including based on the final transaction perimeter.

Entering into definitive agreements remains subject to an ensuing due diligence process. 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.

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(RADIOCOR) 01-07-24 08:01:22 (0058) 5 NNNN