European aerospace company Airbus announced on Monday the terms of its plan to acquire part of Spirit AeroSystems' loss-making business, as part of a broader strategy by Airbus and its competitor Boeing to divest this supplier.
The deal involves Airbus taking over work at loss-making factories that produce key components for its A220 and A350 aircraft.
As part of the agreement, Airbus will receive $559 million in compensation from Spirit, and Airbus will acquire these assets for a symbolic one dollar, subject to final agreement details, Airbus stated.
The European aircraft manufacturer did not specify the compensation mechanism, which stems from Spirit's decision to sell the remaining part of the company back to its former owner, Boeing, due to financial conditions.
Airbus stated that the transaction will ensure the stability of its commercial aircraft projects' supply chain in a more sustainable manner, operationally and financially.
Airbus will take over four of Spirit's plants in the U.S., Northern Ireland, France, and Morocco, which are responsible for work on the A350 and A220 planes. Additionally, Airbus will assume a small amount of Spirit's work on the A220 in Wichita, Kansas, where Spirit's headquarters are located.
