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Boeing Closes USD 4.25bn Acquisition of Aerospace Parts Distributor KLX
Thursday 11 October 2018

11 October 2018 - US aerospace company Boeing (NYSE: BA) has closed the acquisition of US-based aerospace parts supplier KLX Inc. (NASDAQ: KLXI) to enhance its services business, the company said.

The agreement comprises an all-cash transaction for USD 63 per share and the assumption of approximately USD 1bn of net debt, totaling USD 4.25bn.

Boeing's acquisition of KLX Inc. 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 an 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.

The acquired firm will be part of Boeing Global Services and fully integrated with Aviall.

KLX is also a leading supplier of chemical composites, with this combination broadening the scope of what Aviall can offer to customers in this space.

KLX Inc.'s Aerospace Solutions Group employees and operations will be integrated with Aviall, providing a clear path for the business to accelerate growth. The Miami facilities are expected to continue to remain the principal operating location.

The firm's Aerospace Solutions Group FY2017 revenue was USD 1.4bn.

Boeing expects the acquisition to have a neutral earnings impact through 2019 and accretion thereafter, with annual cost savings growing to approximately USD 70m by 2021 and further improvements realized over time. The transaction will be financed primarily with cash on hand, supplemented with debt.

With approximately 2,000 employees, KLX Inc.'s Aerospace Solutions Group is headquartered in Miami with customer service centers located in more than 15 countries.

Boeing is the world's largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems. Boeing employs approximately 140,000 people across the United States and in more than 65 countries.
Date Published: 11/10/2018
Target: KLX Inc
Country: USA
Deal Size: 4.25bn (USD)
Sector: Aerospace/Defence
Type: Corporate acquisition
Financing: Cash
Status: Closed
Buyer: Boeing