AerSale Corporation acquired Qwest Air Parts, Inc. for $26.1 million, a transaction completed in June 2019, structured as All-cash purchase of all outstanding shares for $26.1 million.
Qwest Air Parts, Inc. operates in Asset Management Solutions, is based in Memphis, Tennessee, United States, had revenue of about Approximately $10.4 million of revenue and $1.8 million of income from operations from June 10, 2019 through December 31, 2019. AerSale acquired all of the outstanding shares of Qwest Air Parts, a used serviceable material (USM) distributor and certified repair facility based in Memphis, Tennessee, for $26.1 million in cash. The business was folded into AerSale's Asset Management Solutions segment, and the purchase-price allocation recorded about $13.4 million of goodwill plus intangible assets including customer relationships (roughly $9.6 million) and an FAA Part 145 certificate. From the June 10, 2019 acquisition date through December 31, 2019, Qwest contributed approximately $10.4 million of revenue and $1.8 million of income from operations. This transaction closed before AerSale became a public company through its December 2020 business combination and is disclosed in AerSale's SEC filings.
AerSale stated the purpose of the acquisition was to improve the company's profitability by enhancing service in its Asset Management Solutions segment.
An established USM distributor with a certified repair capability and long-standing customer relationships that complemented AerSale's parts and asset-management operations. Asset Management Solutions segment Qwest operates as part of AerSale's Asset Management Solutions segment; its goodwill and FAA-certification intangibles are carried under that segment. Gary Jones, Qwest's president and CEO from 1999 to 2019, joined AerSale as president of its Materials Group.
Advisory firms were not disclosed for this transaction.