Boeing to enhance services business with KLX Inc. acquisition
Capabilities of KLX Inc. include global parts distribution, chemical composites and supply chain services for aerospace and defense industries worldwide.
Boeing (Chicago, IL, US) announced May 1 it has entered a definitive agreement to acquire KLX Inc. (Miami FL, US) to enhance its growing services business. The agreement comprises an all-cash transaction totaling $4.25 billion. The acquisition will include KLX Inc.'s Aerospace Solutions Group, and is conditional upon the successful divestment and separation of KLX Inc.'s Energy Services Group.
KLX Inc. is a major independent provider of aviation parts and services in the aerospace industry. Its capabilities include global parts distribution and supply chain services for aerospace and defense industries worldwide. KLX Inc. will be part of Boeing Global Services and fully integrated with Aviall (Cincinnati, OH, US). KLX Inc. is also a leading supplier of chemical composites, with this combination broadening the scope of what Aviall can offer to customers in this space.
"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."
KLX Inc.'s Aerospace Solutions Group employees and operations will be integrated with Aviall. The Miami facilities are expected to continue to remain the principal operating location.
"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," said Amin Khoury, KLX Chairman and CEO. "This business combination will enable us to deliver industry-leading value-added service solutions for our customers, and outstanding growth opportunities for our suppliers."
The completion of the transaction is subject to customary conditions, including regulatory clearance and the approval by a majority of KLX Inc. shareholders. The sale is expected to close by 3Q 2018.
Related Content
-
ASCEND program update: Designing next-gen, high-rate auto and aerospace composites
GKN Aerospace, McLaren Automotive and U.K.-based partners share goals and progress aiming at high-rate, Industry 4.0-enabled, sustainable materials and processes.
-
Plant tour: Spirit AeroSystems, Belfast, Northern Ireland, U.K.
Purpose-built facility employs resin transfer infusion (RTI) and assembly technology to manufacture today’s composite A220 wings, and prepares for future new programs and production ramp-ups.
-
Combining multifunctional thermoplastic composites, additive manufacturing for next-gen airframe structures
The DOMMINIO project combines AFP with 3D printed gyroid cores, embedded SHM sensors and smart materials for induction-driven disassembly of parts at end of life.
