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Boeing Finalises Sale of Two US Plants (Jun 17)

CHICAGO --- The Boeing Company completed the sale of its Commercial Airplanes operations in Kansas and Oklahoma to Onex Corporation today. The transaction includes facilities and assets in Wichita, Kansas, and Tulsa and McAlester, Oklahoma. Boeing Integrated Defense Systems operations in Wichita and Oklahoma are not included in the sale.

"We thank our Wichita team for their many contributions to Boeing over the years, and we look forward to working with them to grow our businesses together," said Alan Mulally, president and CEO of Boeing Commercial Airplanes.

"We're excited to enter the aerospace industry with a workforce and facilities that are deeply rooted in the aviation business," said Nigel Wright, Managing Director at Onex. "The new company, Mid-Western Aircraft Systems, is now the world's largest independent supplier of structures for commercial aircraft. We plan to build on this foundation, invest in the company, and grow the business."

Boeing and Onex announced the planned sale in February of 2005. The value of the transaction to Boeing includes approximately $900 million cash, transfer of certain liabilities and long-term supply agreements that provide ongoing savings to Boeing.

The single-source supply agreements cover the structures and parts currently produced by the Wichita/Tulsa Division. Also, the new company will remain a major supplier partner on the 787 Dreamliner program.

The Wichita/Tulsa Division currently supplies fuselage and other structural components for the 737, 747, 767 and 777 jetliners.

Boeing Completes Sale of Commercial Airplanes Operations in Kansas and Oklahoma