News
Boeing closes KLX acquisition
October 12th 2018
Boeing this week finalised the acquisition of aircraft parts and services supplier, KLX Inc. Read More » The OEM said the US$4.25 billion acquisition would enhance its growing services business and deliver greater value to its customers. The global services market is valued at approximately US$2.8 billion for the coming decade.
KLX Inc. is a major independent provider of aviation parts and services to the aerospace industry. Its capabilities include global parts distribution and supply chain services for aerospace and defence industries worldwide. KLX Inc. will be part of Boeing Global Services and be fully integrated with Aviall.
“This acquisition brings together the talent and product offerings of Boeing and KLX to provide a one-stop shop that will allow us to create significant value for our customers. There are also extensive opportunities for services growth and innovation for Boeing and our supply chain that is unique to the industry,” said president and CEO of Boeing Global Services, Stan Deal. “The resulting boost in supply chain capability will allow us to better serve our customers while profitably and purposefully growing our business.”
KLX Inc.'s Aerospace Solutions Group employees and operations will be integrated with Aviall, with the Miami facility to remain the company’s principal operating location.
“Our customers have long desired a supplier who could offer essentially 100 percent 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, defense and business and general aviation markets,” said KLX Chairman and CEO, Amin Khoury.
KLX Inc.'s Aerospace Solutions Group 2017 revenue was US$1.4 billion. Boeing expects the acquisition to have a neutral earnings impact until 2019 with accretion from that date. Annual cost savings are expected to be US$70 million by 2021.
Boeing’s acquisition of KLX is part of a wider supply chain consolidation trend. In January, Boeing announced the establishment of Adient Aerospace, a joint venture that will develop, manufacture and sell aircraft seating products on new airplanes and retrofitted jets built by Boeing and other OEMs.
