Boeing acquires KLX company for about 3.2 billion USD in cash

boeingThe aircraft manufacturer Boeing will acquire the KLX company for about 3.2 billion USD in cash to expand its aerospace business. The deal, valued at 63 USD per share, estimated KLX at 4.25 billion USD, including about 1 billion USD in net debt.

The acquisition depends on the successful sale and separation of the KLX Energy Services Group. The KLX shares rose by about 24% since December 22nd, when the company said it would explore strategic alternatives including a potential sale.

Boeing CEO Dennis Muilenburg said last week that the growth of the company’s services would be backed by strategic acquisitions.

The aircraft manufacturer added that there would be no change in the 2018 guidelines or the capital development strategy and expects annual cost savings to be around 70 million USD by 2021.

Last year, Boeing launched a global services business that announced nearly 1 billion USD worth of deals in February to step up its services with higher margin and revenue with spare parts.

KLX will be part of Boeing Global Services and will merge with Boeing Parts, Equipment and Services Aviall.

The joint venture will offer everything in one place to win its supply chain and customers.