Chamois’ Post

Boeing, an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide, agreed to acquire Spirit AeroSystems, an American aerostructure manufacturer, for $8.3bn. "After carefully evaluating Boeing's offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders, and will benefit Spirit's other stakeholders. Bringing Spirit and Boeing together will enable greater integration of both companies' manufacturing and engineering capabilities, including safety and quality systems," Patrick M. Shanahan, Spirit President and CEO. Spirit AeroSystems (led by Patrick M. Shanahan, Irene Esteves and Bob Johnson) is advised by Moelis & Company, Morgan Stanley and Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates. Boeing (led by David Calhoun, Brian West and Steve Mollenkopf) is advised by Goldman Sachs, PJT Partners and Sullivan & Cromwell LLP. #MergersAcquisitionsDiversitures #Aerospace #Markets

Boeing's recent deal with Spirit AeroSystems has left some space and defense suppliers in limbo. This partnership is set to bring about significant changes in the industry, with potential impacts on various companies involved in the supply chain. As the aerospace market continues to evolve, it's crucial for suppliers to stay informed and adapt to these changes. This deal could open up new opportunities for collaboration and innovation, but it also presents challenges for those who may be affected by the shifting dynamics.

SALE OF SPIRIT - CONSIDERATIONS AND VALUATION What if Spirit AeroSystems, a company in the aerospace industry, was sold tomorrow. Currently, its stock is trading at $35 per share, and its total value is about $4 billion. Boeing is driving this acquisition. They want to control their supply chain and manufacturing better, especially after the 737 MAX crisis. Buying Spirit is part of Boeing's plan to improve its competitiveness, manage risks, and deal with regulations. Spirit is a key supplier for Boeing, so this acquisition is crucial for Boeing's operations. This potential sale shows how complicated the aerospace industry is. It reminds us how important it is to handle supply chains, safety issues, and competition. However, Spirit isn't just about Boeing Commercial. It has a diverse portfolio, international presence, and integrated management, supply chain, and research. SPIRIT OVERVIEW 🌀The company operates in three principal segments: Commercial, Defense & Space, and Aftermarket. 🌀Research and development efforts benefiting the company as a whole are not unique to specific segments. 🌀The Commercial Segment design and manufacturing for commercial and business/regional jet programs. Components include the forward section of the aerostructure, mid and rear fuselage sections, nacelles, struts/pylons, horizontal and vertical stabilizers, flaps and slats, wing structures, and fully functional wing systems. 🌀Defense & Space Segment: Design and manufacturing of various components primarily for U.S. Government defense programs. Components include fuselage, strut, nacelle, and wing aerostructures. Also includes missiles and hypersonic, rotorcraft aerostructures, and classified programs. 🌀The Aftermarket segment includes designing, manufacturing, and marketing spare parts and MRO services. 🌀Spirit AeroSystems boasts a broad international footprint, with facilities strategically located across the globe. #PoynterSpiritSale  

Supplier to Boeing and Airbus warns against break-up of Northern Ireland facility Dismantling Spirit AeroSystems’ Belfast operations would harm region’s aerospace industry, says UK chair. As discussions evolve around the potential sale of Spirit AeroSystems’ operations in Northern Ireland, concerns rise about the impacts on the region’s aerospace industry. Sir Michael Ryan, chair of Spirit’s UK subsidiary, strongly advocates for keeping the Belfast operations unified to avoid disruption and support long-term success. With Boeing considering reintegration of Spirit, and Airbus expressing intentions to maintain their collaborations, the decisions made now will set pivotal industry precedents. How do you think this will affect the competitive dynamics in aerospace manufacturing? The head of Spirit AeroSystems UK has warned the potential break-up of its Northern Ireland operations in the event of a sale would be “extremely detrimental” to their future and the region’s aerospace industry. The fate of Spirit’s Belfast operations is unknown after Boeing said in March it was in talks to buy the troubled US aerospace supplier it spun off nearly 20 years ago. Sir Michael Ryan, who chairs Spirit’s UK subsidiary, wrote to local stakeholders that “any dismantling of the business would be extremely detrimental to the long-term future of the Belfast business, and by extension, the region’s aerospace industry”. “We firmly believe maintaining the Northern Ireland operations as a single entity is the best option in any proposed acquisition,” Ryan added in the letter, which was sent at the end of April, a copy of which has been seen by the Financial Times. Boeing is under pressure to shift more of its production in-house after the fuselage section of one of its aircraft blew out in mid-air. Spirit supplies Boeing with the fuselages for its 737 Max aircraft and both manufacturers are undergoing an audit by America’s aviation safety regulator. The talks have become complicated, however, as Spirit seeks to offload the work it does for Boeing’s European rival Airbus, notably at Belfast but also at a site in Scotland and in the US. Guillaume Faury, Airbus chief executive, said last month the company was in early-stage talks with Spirit about the work it does for the plane maker. “We would not want our important work packages to be procured from our main and almost sole competitor,” said Faury.

🛫 Hot take: with the potential exception of a handful of top-performing and highly innovative players, commercial aerospace is no longer an industry for small suppliers. 🚀 Thanks to Aviation Week Network (Joseph Anselmo, Michael Bruno) for publishing my perspective on how we need to raise the bar for the next-gen supply chain in aerospace and its implications for small suppliers. Do you agree? #aerospace #supplychain #smallbusiness (🙏 John Stoll)

"𝐈𝐓'𝐒 𝐍𝐄𝐕𝐄𝐑 𝐉𝐔𝐒𝐓 𝐀 𝐒𝐇𝐀𝐃𝐄" It's a good tagline right? But with ATG it's more than just some words. Florida based ATG is the current global "standard bearer" for aircraft window shades and it didn't just happen. ATG is, in the truest sense of the term, a technology company. They are tireless in their constant push for new technological advantages that improve both the passenger experience and the maintenance profile of their customers. 𝐀𝐞𝐫𝐨𝐬𝐩𝐚𝐜𝐞 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐢𝐞𝐬 𝐆𝐫𝐨𝐮𝐩 𝐢𝐬 𝐣𝐮𝐬𝐭 𝐭𝐡𝐚𝐭...𝐚 𝐭𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐠𝐫𝐨𝐮𝐩 - but thankfully for the world's major airlines and business jet OEMs, it's a tech company focussed entirely on the continual refinement of aircraft window shades. How much better can they get? It's a fair question I suppose, but you can bet the answer will continually emerge from ONE company, 𝑨𝑻𝑮. Visit ATG's Shameless Plug page here: https://lnkd.in/eCVdTMZ9

The main difference is the volume of the production, as Cameri builds about 15 F-35s per year and Fort Worth produces about 130. What makes Cameri’s FACO attractive is the possibility to have the initial aircraft delivered quickly, in spite of current Technology Refresh 3 (TR-3) delays experienced by Fort Worth. Lockheed Martin confirmed to us earlier this year that the FACO is currently producing TR-2 aircraft, which are not subject to the delays and will be later retrofitted to the TR-3 configuration. According to Jennings, Poland has expressed an interest in Cameri’s production for these reasons. https://lnkd.in/gKwJCuQh

Interesting to see the BAE view of this project.

Another three Czech entities signed an agreement on cooperation on the purchase of the F-35 with Lockheed Martin. It also includes industrial cooperation in the form of eleven projects with Lockheed Martin and three projects with Pratt&Whitney. Thirteen Czech companies and universities are to take part in them, in four areas – component production, research and development, pilot training and maintenance, service and repairs. The total value of cooperation projects will exceed fifteen billion crowns.

Babst Calland announced today its plan to expand the firm’s capabilities in its Aerospace, Aviation and Airports practice through a strategic partnership with Jeff Immel, former general counsel of the Allegheny County Airport Authority, the operator of Pittsburgh International Airport and Allegheny County Airport, and experienced aviation and aerospace attorney. According to Justine Kasznica, Babst Calland's chair of the Aerospace, Aviation and Airports and Emerging Technologies practice groups, "We look forward to partnering with Jeff on many new endeavors as we forge new pathways in the aerospace, aviation and airport industries and helping our existing clients in these sectors to grow and expand." https://lnkd.in/eMaVs_U6 #babstcalland #aerospacelaw #aviationlaw #airportlaw