Spirit AeroSystems to sell Malaysia facility to CTRM for $95.2 million

WICHITA - Spirit AeroSystems Holdings, Inc. (NYSE:SPR) announced Friday it has reached an agreement to sell its Subang, Malaysia facility and operations to Composites Technology Research Malaysia Sdn Bhd (CTRM) for $95.2 million, subject to customary adjustments. According to InvestingPro data, the company currently operates with a significant debt burden of $5.4 billion and has been rapidly burning through cash, making this divestment a potentially crucial move for its financial stability.

The transaction follows Spirit’s previously announced merger agreement with Boeing and a separate definitive agreement with Airbus. The sale is expected to close in the fourth quarter of 2025, pending regulatory approvals and satisfaction of closing conditions. With a current market capitalization of $4.7 billion and a concerning current ratio of 0.77, InvestingPro analysis reveals that Spirit’s short-term obligations exceed its liquid assets.

The Subang facility spans 45 acres with a 400,000 square-foot manufacturing footprint in Malaysia’s International Aerospace Centre and employs over 1,000 workers. The operation provides aerostructures assembly and services capabilities with an integrated supply chain.

Upon completion of the transaction, CTRM will become a supplier to Airbus for A220, A320, and A350 programs, as well as to Boeing for 737 and 787 programs.

"Our agreement with CTRM for the acquisition of this manufacturing facility ensures a strong future for this business as well as the regional stakeholders in Malaysia," said Irene Esteves, Spirit AeroSystems executive vice president and chief financial officer, according to the company’s press release.

Esteves added that the sale "marks a milestone in the ongoing acquisition of Spirit by Boeing."

Spirit AeroSystems is a major manufacturer of aerostructures for commercial airplanes, defense platforms, and business jets, with facilities in the U.S., U.K., France, Malaysia, and Morocco.

CTRM is a Tier 2 aerospace composite supplier that specializes in developing and producing aircraft composite components for global aerospace suppliers.

In other recent news, Boeing has received regulatory approval from the UK’s Competition and Markets Authority for its planned acquisition of Spirit AeroSystems. This decision allows the merger to proceed without a Phase 2 investigation in the United Kingdom. Additionally, Spirit AeroSystems has amended its agreement with Airbus, securing an extra $94 million in financial support. This brings the total assistance from Airbus to $152 million, specifically allocated for Airbus programs. In another development, Boeing is set to take over Spirit AeroSystems’ facility in Belfast, Northern Ireland, after efforts to sell the site failed. However, Spirit AeroSystems faced a challenging situation following a crash involving an Air India Boeing 787-8 Dreamliner. The crash, which occurred shortly after takeoff from Ahmedabad, India, resulted in multiple fatalities, and Boeing is currently investigating the incident.

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