WICHITA, KS - Spirit AeroSystems (NYSE:SPR) Holdings, Inc. (NYSE:SPR), a major manufacturer in the aircraft parts industry with a market capitalization of $4 billion, has finalized the sale of its subsidiary, Fiber Materials Inc., to Tex-Tech Industries, Inc.
The transaction, which was completed today, involved an all-cash purchase price of $165 million, subject to certain adjustments as outlined in the agreement between the parties. According to InvestingPro data, this sale comes at a crucial time as the company faces significant debt challenges and rapid cash burn.
The sale was initially disclosed in a previous announcement on November 17, 2024, when Spirit AeroSystems, Inc., a wholly owned subsidiary of Spirit AeroSystems Holdings, Inc., entered into a Stock Purchase Agreement with Tex-Tech Industries, Inc. This agreement set forth the terms and conditions of the acquisition, including the transfer of all outstanding equity interests in Fiber Materials Inc. to the buyer.
The completion of this divestiture represents a significant financial transaction for Spirit AeroSystems, as the company continues to adjust its portfolio and streamline its operations. The details of the Stock Purchase Agreement were made available in an exhibit to Spirit’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on November 19, 2024.
Spirit AeroSystems' decision to sell Fiber Materials Inc. is part of its broader strategic efforts, although the specific reasons for the divestiture were not disclosed in the press release statement. It is standard practice for corporations to realign their business structures and divest non-core assets as part of ongoing business strategy.
The transaction was officially completed today, and the financial implications of the sale may be reflected in Spirit AeroSystems' future financial statements. The sale does not affect the company's other operations or its position in the aircraft parts and auxiliary equipment industry.
Investors and stakeholders in Spirit AeroSystems Holdings, Inc. will likely monitor the impact of this divestiture on the company's financial health and strategic positioning moving forward. Despite revenue growth of 16.62% in the last twelve months, InvestingPro analysis indicates the stock is currently fairly valued based on its Fair Value model. For comprehensive insights including 10 key ProTips and detailed financial analysis, investors can access the full Pro Research Report on InvestingPro. The information for this article is based on a SEC filing.
In other recent news, Spirit AeroSystems has been making significant moves. The aerostructures manufacturer completed the sale of its Fiber Materials Inc (FMI) unit to Tex Tech Industries for $165 million, a strategic move amid its debt obligations that total $5.14 billion. Spirit AeroSystems also reported third-quarter revenue of $1.47 billion and a net loss of $4.07 per share.
The company secured a non-interest-bearing line of credit totaling $107 million from Airbus to ensure continued product delivery. As part of its upcoming merger with The Boeing Company (NYSE:BA), Spirit AeroSystems made substantial changes to executive compensations, including advancing the vesting of certain time-based restricted stock units.
These recent developments also include a temporary furlough affecting approximately 700 employees. Spirit AeroSystems' market value continues to be influenced by the terms of the Boeing acquisition, according to analysts from InvestingPro.
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