Boeing acquires aerospace parts supplier KLX
Boeing announced on May 1, 2018, entering a definitive agreement to acquire KLX as a means to enhance its growing services business. The agreement comprises an all-cash transaction for $63 per share and the assumption of approximately $1.0 billion of net debt, totaling at $4.25 billion.
Boeing's acquisition of KLX will include KLX's Aerospace Solutions Group, and is conditional upon the successful divestment and separation of KLX's Energy Services Group.
KLX is an independent provider of aviation parts and services in the aerospace industry. Its capabilities include global parts distribution and supply chain services for aerospace and defense industries worldwide. KLX will be part of Boeing Global Services and fully integrated with Aviall.
KLX is also a supplier of chemical composites, with this combination broadening the scope of what Aviall can offer to customers in this space.
"This acquisition is the next step in our services growth strategy, with a clear opportunity to profitably grow our business and better serve our customers in a $2.6 trillion, 10-year services market," said Stan Deal, president and CEO of Boeing Global Services in a statement. "By combining the talent and product offerings of Aviall and KLX, we will provide a one-stop-shop that will benefit our supply chain and our various customers in a meaningful way."
KLX's Aerospace Solutions Group employees and operations will be integrated with Aviall. The Miami facilities are expected to continue to remain the principal operating location.
"The combination of Aviall and KLX Aerospace facilitates the broadest scope of parts and products to support all customer fleet types for the commercial, military and defense and business and general aviation markets," said Amin Khoury, KLX Chairman and CEO.
KLX's Aerospace Solutions Group FY2017 revenue was $1.4 billion. Boeing expects the acquisition to have a neutral earnings impact through 2019 and accretion thereafter, with annual cost savings growing to approximately $70 million by 2021 and further improvements realized over time. The transaction will be financed primarily with cash on hand, supplemented with debt.
The completion of the transaction is subject to customary conditions, including regulatory clearance and the approval by a majority of KLX shareholders. The sale is expected to close by 3Q 2018. The transaction is also subject to the successful divestment and separation of KLX's Energy Services Group.
Greenpeace to sue Dutch government over KLM bailout
Greenpeace will take legal action against the Dutch government, accused of bailing out the airline KLM with 3.4 billion...
Brazil proposes a $376 million injection to Azul Airlines
Azul Airlines, a Brazil-based carrier, received an injection proposal from the Brazilian government that could dilute it...
Boeing and Airbus: surviving the crisis | Data
Although the entire aviation industry was struck by COVID-19 pandemic like never before, the aircraft manufacturers were...
Asiana receives $2B injection from S. Korea after HDC deal fails
South Korea plans to inject $2 billion (2.4 trillion won) to Asiana Airlines after the carrier’s acquisition deal...
9 of top 10 airline stocks are Chinese, gauge shows
Bloomberg’s gauge of the airline sector shows that over the past three months, almost all of the ten world’s...