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WICHITA, Kan. - Spirit AeroSystems (NYSE:SPR) Holdings, Inc. (NYSE: SPR), a major manufacturer of aerostructures with a market capitalization of $4 billion, has completed the sale of its Fiber Materials Inc (FMI) business to materials science company Tex Tech Industries, Inc. The cash transaction, valued at $165 million, involves FMI's facilities in Biddeford, Maine, and Woonsocket, Rhode Island. According to InvestingPro data, this sale comes as Spirit faces significant debt obligations, with total debt reaching $5.14 billion as of the latest quarter.
FMI is recognized for its high-temperature materials and reinforced composites, such as Carbon / Carbon composites, which are used in applications like thermal protection systems and rocket motor components. The company's materials have been integral to various defense and NASA programs, including the Mars Curiosity and Orion missions. FMI employs around 400 engineers and production personnel.
Spirit AeroSystems' Chief Financial Officer, Irene Esteves, stated that the sale aligns with the best interests of Spirit, FMI, and their customers. Scott Burkhart, CEO of Tex-Tech, commented on the strategic nature of the acquisition, noting that FMI's capabilities will enhance their offerings in the space and defense sectors.
Morgan Stanley (NYSE:MS) & Co. LLC acted as Spirit's lead financial advisor, with Skadden, Arps, Slate, Meagher & Flom LLP providing legal counsel. Tex-Tech was advised by Lincoln International LLC, with Sheppard Mullin Richter & Hampton LLP as their legal advisor.
Spirit AeroSystems is known for its extensive expertise in aluminum and advanced composite manufacturing solutions. Its products are integral to commercial airplanes, defense platforms, and business/regional jets. While the company has achieved notable revenue growth of 16.62% over the last twelve months, InvestingPro analysis reveals challenges with gross profit margins and cash management. The company's facilities span across the U.S., U.K., France, Malaysia, and Morocco.
Tex-Tech Industries, headquartered in Kernersville, North Carolina, supplies materials science solutions to various industries, including aerospace, defense, medical, and industrial sectors. The company has a global presence with manufacturing, R&D, and sales sites across North America and Europe.
This article is based on a press release statement.
In other recent news, Spirit AeroSystems has reported third-quarter revenue of $1.47 billion and a net loss of $4.07 per share. The company's valuation continues to be influenced by the terms of the Boeing acquisition, according to analysts from InvestingPro. Furthermore, Spirit AeroSystems has secured a non-interest-bearing line of credit totaling $107 million from Airbus, to ensure the continued delivery of products.
In preparation for its impending merger with The Boeing Company (NYSE:BA), Spirit AeroSystems has made significant changes to executive compensation. Certain time-based restricted stock units (RSUs) scheduled for vesting in 2025 will now vest in December 2024 for select executives, including President and CEO Patrick M. Shanahan.
In addition to these developments, Spirit AeroSystems has also announced a temporary furlough affecting approximately 700 employees. These recent developments highlight the company's strategic steps to navigate its complex financial landscape amid industry challenges.
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