Military Embedded Systems

Boeing enters agreement to purchase KLX Inc. in all-cash transaction for $63 per share


May 08, 2018

Mariana Iriarte

Technology Editor

Military Embedded Systems

CHICAGO. KLX, Inc. and Boeing officials entered a definitive agreement in which Boeing will acquire KLX Inc. to enhance its growing services business. The agreement comprises an all-cash transaction for $63 per share and the assumption of approximately $1 billion of net debt, totaling $4.25 billion.

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. KLX Inc. will be part of Boeing Global Services and fully integrated with Aviall.

KLX Inc. is also a 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 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. The transaction is also subject to the successful divestment and separation of KLX Inc.'s Energy Services Group.


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