Boeing has entered into a definitive agreement to buy Miami-based aerospace parts and aftermarket services provider KLX Inc. for US$4.25 billion, including the assumption of approximately $1 billion of net debt.
KLX will be part of Boeing Global Services and fully integrated with its parts and services subsidiary Aviall, as Boeing continues to position itself to capture a larger slice of the estimated $2.6 trillion, 10-year services market. The US manufacturer says the move will create a premier provider of parts and productivity services and anticipates annual cost savings of approximately $70 million by 2021.
The acquisition includes KLX’s Aerospace Solutions Group and is conditional upon the successful divestment and separation of KLX’s Energy Services Group. KLX’s capabilities include global parts distribution and supply chain services for aerospace and defence industries worldwide. It is also a leading supplier of chemical composites, with this combination broadening the scope of what Aviall can offer to customers in this space, says Boeing.
“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. “By combining the talent and product offerings of Aviall and KLX Inc., we will provide a one-stop-shop that will benefit our supply chain and our various customers in a meaningful way.”
Amin Khoury, KLX chairman and CEO, added: “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 defence, and business and general aviation markets.”
KLX Inc.’s Aerospace Solutions Group’s 2017 financial year revenue was $1.4 billion. The sale is expected to close by the third quarter of this year, subject to the successful divestment and separation of the energy services group.
