B/E Aerospace made a €200 million ($249 million) deal to acquire Interturbine Aviation Logistics, Interturbine Logistics Solutions and Interturbine Technologies. The transaction is expected to close in the fourth quarter.
Interturbine, headquartered in Germany, has an inventory of 500,000 different part numbers that it provides for various MROs and airlines for products including hydraulic fluid, chemicals, composites, adhesives, cabling, fasteners and electrical components.
Under the deal, B/E will add these offerings to its 400,000 part numbers, comprised largely of consumables and fasteners. B/E will also take ownership of several offices and distribution centers globally.
"It's a real product expansion," B/E says.
B/E says that the deal will allow it to expand overseas, especially to Europe and the Asia-Pacific region. The company's 2011 annual report shows that 52% of its revenues came from the US, 24% were from Europe and 24% from emerging markets, such as Asia and the Middle East. B/E says that it expects the acquisition to be neutral to 2012 and 2013 earnings and expects the deal to start increasing earnings per share in 2014.
More than 60% of Interturbine's business is for "aircraft on ground" situations, which requires delivering parts to aircraft that need unexpected repair within 24h or less. Interturbine's logistics arm has several distribution centers and offices in Europe and the US as well as facilities in Canada, Russia, Japan, Hungary, Singapore, India, South Africa, Australia and the UAE.
Along with the inventory, B/E will acquire manufacturing capabilities from Interturbine Technologies, which makes tool control systems, inspection equipment, containers for air cargo and ground support equipment.