Boeing (NYSE: BA) said on Tuesday it would buy aerospace parts company KLX (NASDAQ: KLXI) for about $3.2 billion in cash to expand its aircraft services business.
The $63-per-share offer gives KLX an enterprise value of $4.25 billion, including about $1 billion of net debt.
Boeing CEO Dennis Muilenburg said last week its services growth would be complemented by strategic acquisitions.
The plane maker said there will be no change to its 2018 guidance or capital deployment strategy and expects annual cost savings of about $70 million by 2021.
Last year, Boeing launched a services business, which announced deals worth nearly $1 billion in February, as it looks to capture more of the higher-margin services and spare-parts revenue after a plane is sold.
KLX Inc. is a major 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 CEO Amin Khoury "Our customers have long desired a supplier who could offer essentially 100% of their requirements for fasteners, consumables and expendables. The combination of Aviall and KLX Aerospace facilitates the broadest scope of parts and products to support all customer fleet types for the commercial, military and defense and business and general aviation markets.
"This business combination will enable us to deliver industry-leading value-added service solutions for our customers, and outstanding growth opportunities for our suppliers."
BA shares slipped $1.98 to $331.58, while KLI shares slouched $6.78, or 8.7%, to $71.45
