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.