Boeing Calls Time on the Great American Outsourcing

Medial

10 hours ago

Boeing calls time on the Great American Outsourcing | Medial

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The plane maker’s purchase of Spirit AeroSystems, a supplier it spun off in 2005, shows that the post-1980s manufacturing model went too far

The Wall Street Journal

a day ago

Boeing Calls Time on the Great American Outsourcing - WSJ

Jon Sindreu

July 2, 2024 5:49 am ET

Boeing has struck a deal to buy Spirit AeroSystems, which manufactures fuselages for its 737 jets. PHOTO: DAVID RYDER/BLOOMBERG NEWS

Spirit AeroSystems is going full circle, from part of Boeing BA -0.39%decrease; red down pointing triangle to independent supplier and back to part of Boeing.

It is the perfect example of a realization dawning on corporate America: Outsourcing isn’t all it was once cracked up to be.

On Monday, Boeing said it would buy the Wichita-based aircraft-fuselage maker in an all-stock deal valuing it at $37.25 per share, a 13% premium over last week’s closing price.

It seems like a good deal for Spirit’s investors, who have suffered a 53% negative total return since the end of 2019—worse than Boeing’s negative 42%.