Spirit AeroSystems’ Stock In Spotlight After $165M Sale Of Fiber Materials To Tex-Tech Industries: Retail’s Unconvinced

Fiber Materials manufactures high-temperature materials and reinforced composites focusing on carbon and related composites. Its products are installed on critical defense platforms and NASA programs such as Stardust, Mars Curiosity, Orion, and Mars 2020.

Spirit AeroSystems’ Stock In Spotlight After $165M Sale Of Fiber Materials To Tex-Tech Industries: Retail’s Unconvinced

Shares of Spirit AeroSystems Holdings Inc (SPR) were in the spotlight on Monday after the firm announced the sale of Fiber Materials Inc (FMI) based in Biddeford, Maine, and Woonsocket, Rhode Island, to Tex Tech Industries, Inc. for $165 million in cash.

Tex-Tech Industries, Inc. provides high-temperature and high-performance specialty materials and coatings. Fiber Materials manufactures high-temperature materials and reinforced composites focusing on carbon and related composites.

FMI’s products are installed on critical defense platforms and NASA programs such as Stardust, Mars Curiosity, Orion, and Mars 2020.

Tex-Tech CEO Scott Burkhart said the acquisition of FMI is highly complementary and strategic for the firm. "The addition of FMI adds a unique set of high-performance products to our robust portfolio of thermally protective materials. FMI's unique capabilities will allow us to better service the rigorous material requirements in the rapidly growing space and defense industry.,” he said.

Despite the development, retail sentiment on Stocktwits trended into the ‘bearish’ territory (44/100), accompanied by high retail chatter.

SPR’s Sentiment Meter and Message Volume as of 1:45 p.m. ET on Jan. 13, 2024 | Source: Stocktwits SPR’s Sentiment Meter and Message Volume as of 1:45 p.m. ET on Jan. 13, 2024 | Source: Stocktwits

In November, Spirit AeroSystems announced an advance payments agreement with Boeing Co (BA) in which the latter committed to paying Spirit advance payments up to a total of $350 million to produce Boeing products at the company's required rates.

Under the terms of the agreement, Spirit must repay 25% of the advance to Boeing on April 30, 2026, June 30, 2026, Sept. 30, 2026, and Dec. 31, 2026.

Notably, Boeing had earlier announced it would acquire Spirit AeroSystems in an all-stock transaction at an equity value of approximately $4.7 billion.

Meanwhile, SPR shares have gained over 31% over the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

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