Advertising

Boeing closes acquisition of parts company KLX

Boeing has acquired aircraft parts and services provider KLX Inc, a move that furthers Boeing's goal of significantly boosting its aftermarket presence.

Boeing did not immediately confirm the price at which the deal closed, but previously said it intended to pay $4.25 billion for KLX.

The aircraft maker also said it intended to integrate KLX Aerospace Solutions, a division within KLX, into Aviall, a Boeing-owned parts and services provider.

KLX, which had been publicly traded, earned revenue of $1.7 billion in its most-current fiscal year, including $1.4 billion generated by its Aerospace Solutions Group. The company posted a net profit for that year, which ended in January, of $53 million.

KLX has some 2,000 employees and will remain headquartered in Miami, Boeing says. The deal will make Boeing "a one-stop shop" for parts and services, says Stan Deal, chief executive of Boeing Global Services, in a media release. Boeing will also have greater access to parts and services for non-Boeing-built aircraft, it has said.

"The resulting boost in supply chain capability will allow us to better serve our customers while profitably and purposefully growing our business," Deal says.

"The acquisition positions Boeing to compete and win in the $2.8 trillion, 10-year aerospace services market," Boeing adds.

Boeing announced its intention to acquire KLX in May. At that time, Boeing said it intended to retire the name "KLX Aerospace Solutions" in early 2019.

Aftermarket expansion has been top among Boeing's recent priorities.

Boeing formerly offered aftermarket services independently through its commercial, defence and space and security units. But in November 2016 Boeing announced plans to merge all services work into the newly-created Boeing Global Services unit.

Boeing chief executive Dennis Muilenburg said the change placed the company on a path to generate $50 billion in services revenue in a decade.

Boeing Global Services earned revenue of $8 billion in the first six months of 2018, securities filings show.

Related Content
Advertising
Advertising