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.