The Boeing Company acquires KLX Inc. (Aerospace Solutions Group)

The Boeing Company acquired KLX Inc. (Aerospace Solutions Group) for $4.25 billion ($63.00 per share, all cash, plus assumption of approximately $1.0 billion of net debt), a transaction completed in October 2018, structured as All-cash merger; conditional on KLX divesting and separating its Energy Services Group.

KLX Inc. (Aerospace Solutions Group) operates in Boeing Global Services, is based in Wellington, Florida (KLX headquarters); principal operations in Miami, Florida. Boeing acquired KLX Inc., a major independent provider of aviation parts and supply-chain services, for $63 per share, totaling about $4.25 billion including assumed net debt. The deal covered KLX's Aerospace Solutions Group and was conditioned on KLX separating its Energy Services Group. KLX -- also a leading supplier of chemical composites -- was fully integrated with Aviall inside Boeing Global Services to create a broader parts-and-productivity-services provider, with anticipated annual cost savings of roughly $70 million by 2021.

Boeing described the deal as the next step in its services-growth strategy, aiming to profitably grow and better serve customers in a $2.6 trillion, 10-year services market by combining Aviall and KLX into a one-stop shop.

The natural consolidation partner for Aviall, adding scale, chemicals/composites and a broader parts-distribution footprint. Anticipated annual cost savings of approximately $70 million by 2021, with further improvements over time. Aerospace Solutions Group integrated with Aviall inside Boeing Global Services; Miami facilities retained as the principal operating location.

Advisory firms were not disclosed for this transaction.