The Boeing Company acquires Aviall, Inc.

The Boeing Company acquired Aviall, Inc. for $1.7 billion ($48.00 per share, all cash), plus assumption of approximately $448 million of debt net of Aviall's cash, a transaction completed in September 2006, structured as All-cash merger.

Aviall, Inc. operates in Commercial Aviation Services (later Boeing Global Services), is based in Dallas, Texas (Aviall headquarters), had revenue of about $1.3 billion (2005). Boeing acquired Aviall, the largest independent provider of new aviation parts and related aftermarket services, for $48 per share, or about $1.7 billion, plus assumed net debt. Aviall's capabilities span global parts distribution and supply-chain services for the aerospace, defense and marine industries, and the deal expanded Boeing's Integrated Materials Management offering and its position in the fast-growing aviation-parts-and-services market. Aviall reported 2005 revenue of $1.3 billion.

Boeing framed Aviall as a way to profitably grow its services business across both commercial and military customers, calling the combination one that leverages the growing services units of both.

The largest independent aviation-parts distributor, anchoring Boeing's integrated materials-management and aftermarket-services growth. Later fully integrated with KLX Inc. to create a one-stop parts-and-services provider under Boeing Global Services. Reported to Boeing Commercial Aviation Services and operated as a wholly owned subsidiary.

Advisory firms were not disclosed for this transaction.