Boeing
Boeing parts distribution, Gresham, Ore.

Boeing Buy Means Expanded Parts, Service Business

May 1, 2018
Jet builder agreed to pay $4.25 billion for KLX Inc.'s Aerospace Solutions Group, a distributor of parts and aftermarket services to aircraft and defense sectors

The Boeing Co. has an agreement to buy Miami-based KLX Inc. for a total of $4.25 billion, including $1 billion of acquired debt, which it indicated would enhance its growing services business. The focus of the purchase is KLX Inc.'s Aerospace Solutions Group, an independent provider of new aviation parts and related aftermarket services, supplying approximately 2,400 manufacturers in both commercial aerospace and defense sectors, with approximately 1 million catalog items, and operating customer service centers in more than 15 countries.

“We continue to see global services as our biggest market-growth opportunity,” Boeing CEO Dennis Muilenburg is reported to have commented at the company’s annual meeting this week.

Boeing’s purchase agreement is conditioned on divestment of KLX Inc.'s Energy Services Group.

KLX Inc. will be incorporated as part of Boeing Global Services, and integrated with its Aviall subsidiary, a distributor of aviation parts and aftermarket supply-chain management services for the aerospace and defense sectors. The buyer noted that KLX Inc. also supplies chemical composites, which will expand the portfolio of Aviall customers.

"This acquisition is the next step in our 'services growth strategy'," stated 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."

Boeing noted the completion of the transaction is subject to customary conditions, including regulatory clearance and approval by a majority of KLX Inc. shareholders. The sale is expected to during the third quarter of this year.

"Our customers have long desired a supplier who could offer essentially 100 percent of their requirements for fasteners, consumables and expendables. 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," stated Amin Khoury, KLX chairman and CEO.

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries.

Latest from News

Alexander Gordeyev | Dreamstime
Close-up cutting tool insert.
Typhoonski | Dreamstime
New truck rear axle exhibited at the International Motor Show for Commercial Vehicles 2012, Hannover Germany.
Ai © Petr Kahanek | Dreamstime
Staging area; steel slabs prepared for processing; AI generated.
VanderWolfImages
Boeing 777X at the 2023 Paris Air Show. Le Bourget Airport, France.
Uxia Vazquez Losada
At Madrid airport, a LEAP-1A engine by CFM International in place on an Airbus 320 NEO aircraft.