Boeing to acquire KLX for $4.25bn
The all-cash deal will be for US...
The American aerospace manufacturer, Boeing, has announced its plans to acquire the aircraft parts supplier, KLX Inc.
The all-cash deal will be for US$4.25bn, including $1bn of net debt, valuing KLX at $63 per share.
The acquisition, which was announced 1 May, is still subject to shareholder approval, which, if approved, will see closure in the third quarter of 2018.
The deal will be the largest deal made under the management of Dennis Muilenburg, who has held the position of CEO since July 2015.
Muilenburg has been aiming to make acquisitions that will ultimately increase sales within the services business by three times as much within the next 10 years.
The purchase will support Boeing expansion within the maintenance and parts-supply market.
The manufacturer made a $427mn deal in April with the Defense Logistics Agency at Pentagon spanning over five years.
The maintenance work deal will see Boeing supply parts to the US Navy and Marine Corp.
“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,” announced Stan Deal, CEO and President Global Services at Boeing.
Four Factory of the Future Market Trends to Keep an Eye on
Global Smart Manufacturing Market
Attributed to the rapid growth in the adoption of automated systems in industrial processes, the is predicted to grow from US$$175bn (2020) to US$303bn by 2026 with a compound annual growth rate (CAGR) of 6.4% between 2019 and 2026.
While COVID-19 has somewhat slowed down the market’s growth, it is expected that by the second to third quarter of 2023 there will be a ‘considerable’ rise in growth for the market.
Key players in the industry: Schneider Electric, General Electric, Siemens, Honeywell International Inc., Rockwell Automation Inc., FANUC Corporation, and Emerson Electric Co.
Industrial Automation Market
Making people’s lives easier, and their work more accurate and effective, the global demand for automated technologies such as robotics - especially in science and technology - is driving its increase in global market value.
Key players in the industry: ABB, Siemens, General Electric, Schneider, Endress+Hauser, Yokogawa, Honeywell, WIKA, Azbil, Fuji Electric, 3D Systems, and HP.
Smart Factory Market
Expected to grow from US$80.1bn (2021) to US$134.9bn by 2026, the - with a CAGR of 11% between 2021 and 2026 - is experiencing growth driven by fiscal policies adopted to keep manufacturing facilities afloat during COVID-19.
Other driving factors include resource optimisation, cost reduction in production operations, increased demand for industrial robotics, rising demand for technologies, and the growing significance of energy efficiency.
Key players in the industry: Emerson Electric Co., General Electric, Rockwell Automation, Inc., Schneider Electric SE, ABB Ltd., Siemens AG, Mitsubishi Electric Corp., Honeywell International Inc., Endress+Hauser AG, and Yokogawa Electric Corp.
Artificial Intelligence (AI) in Manufacturing Market
“It is undeniable that the manufacturing industry is at the forefront of artificial intelligence implementation,” says . “Manufacturers are using AI-powered analytics to increase performance, product quality, and employee protection, from substantial reductions in unplanned downtime to better crafted goods.”