Dive Brief:
- Spirit AeroSystems is selling its composite materials and components subsidiary Fiber Materials Inc. to specialty textile manufacturer Tex-Tech for $165 million, the Boeing supplier announced Monday.
- The agreement includes the subsidiary’s two facilities in Biddeford, Maine, and Woonsocket, Rhode Island, which employ about 400 workers, Spirit AeroSystems spokesperson Joe Buccino told Manufacturing Dive. There is no timeline on when the deal will close, but Buccino said “both parties are looking to move out on this as quickly as possible.”
- The deal comes as Spirit AeroSystem faces mounting financial issues, with losses totaling approximately $1.5 billion this year alone, casting doubt about its ability to continue operations.
Dive Insight:
Fiber Materials develops and manufactures high-temperature materials and composites used in defense and aerospace applications, according to the release. The products have been installed on NASA programs such as the Stardust and Mars 2020.
Fiber Materials has not been a Spirit AeroSystems subsidiary for long. The fuselage supplier acquired Fiber Materials in January 2020 for $120 million, according to a February 2020 securities filing. The addition to Spirit AeroSystems’ portfolio expanded its defense capabilities and grew its customer base, according to a press release that same year.
“FMI’s advanced capabilities in high-temperature materials, combined with Spirit’s expertise in industrializing next-generation aerostructures, creates a critical capability to industrialize state-of the-art defense technologies essential for the advancement of hypersonic weapons,” Spirit AeroSystems said in the release.
Now, Fiber Materials’ addition to Tex-Tech’s portfolio will be able to add more services to its space and defense customers, Tex-Tech CEO Scott Burkhart said in the release.
“Our customers demand world-class solutions, and the integration of FMI bolsters our ability to meet those demands,” Burkhart said.
While the deal awaits approval, Spirit AeroSystems has taken other actions to preserve its finances and continue operations in the wake of Boeing’s nearly two-month workers strike at its commercial airplane facilities. As of Oct. 28, the strike cost Boeing and its suppliers nearly $9.7 billion, according to an analysis from consulting firm Anderson Economic Group.
Amid the strike, Spirit AeroSystems implemented a 21-day furlough on Oct. 28 for approximately 700 employees at its Wichita, Kansas, facility.
While the company is still on track to close its sale to Boeing by mid-2025, the aircraft maker committed to pay Spirit AeroSystems a $350 million advance, which Buccino confirmed the supplier received. The funds, Spirit AeroSystems’ second advance of the year, will support production and preparation to manufacture Boeing planes.
