Photo courtesy of KLX Aerospace Solutions

Chicago, USA - May 01, 2018

• Boeing will acquire KLX Inc. for $4.25 billion

• Positions Boeing to compete and win in $2.6 trillion, 10-year services market

• KLX Inc. will be part of Boeing Global Services and fully integrated with Aviall

• Creates premier provider of parts and productivity services, offering customers value through broader range of offerings

• Anticipated annual cost savings of approximately $70 million by 2021, with further improvements realized over time

• No change to Boeing's 2018 guidance or capital deployment strategy and commitment to returning approximately 100 percent of free cash flow to shareholders

Boeing (NYSE: BA) announced today it has entered a definitive agreement to acquire KLX Inc. (NASDAQ: KLXI) to enhance its growing services business.

The agreement comprises an all-cash transaction for $63 per share and the assumption of approximately $1.0 billion of net debt, totaling $4.25 billion.

Photo courtesy of KLX Aerospace Solutions

Boeing's acquisition of KLX Inc. will include KLX Inc.'s Aerospace Solutions Group, and is conditional upon the successful divestment and separation of KLX Inc.'s Energy Services Group.

Photo courtesy of KLX Aerospace Solutions

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.

Photo courtesy of KLX Aerospace Solutions

KLX Inc. will be part of Boeing Global Services and fully integrated with Aviall.

KLX Inc. is also a leading supplier of chemical composites, with this combination broadening the scope of what Aviall can offer to customers in this space.

Photo courtesy of KLX Aerospace Solutions

"This acquisition is the next step in our services growth strategy, with a clear opportunity to profitably grow our business and better serve our customers in a $2.6 trillion, 10-year services market," said Stan Deal, president and CEO of Boeing Global Services.
"By combining the talent and product offerings of Aviall and KLX Inc., we will provide a one-stop-shop that will benefit our supply chain and our various customers in a meaningful way."

Photo courtesy of KLX Aerospace Solutions

KLX Inc.'s Aerospace Solutions Group employees and operations will be integrated with Aviall, providing a clear path for the business to accelerate growth.

The Miami facilities are expected to continue to remain the principal operating location.

Photo courtesy of KLX Aerospace Solutions

"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 and defense and business and general aviation markets," said Amin Khoury, KLX Chairman and CEO.
"This business combination will enable us to deliver industry-leading value-added service solutions for our customers, and outstanding growth opportunities for our suppliers."

Photo courtesy of KLX Aerospace Solutions

KLX Inc.'s Aerospace Solutions Group FY2017 revenue was $1.4 billion.

Boeing expects the acquisition to have a neutral earnings impact through 2019 and accretion thereafter, with annual cost savings growing to approximately $70 million by 2021 and further improvements realized over time.

KLX Aerospace Solutions - Service Offerings Photo courtesy of KLX Aerospace Solutions

The transaction will be financed primarily with cash on hand, supplemented with debt.

The completion of the transaction is subject to customary conditions, including regulatory clearance and the approval by a majority of KLX Inc. shareholders.

No matter what your aircraft hardware needs are, with more than 1 million part numbers in stock from more than 3,000 suppliers, KLX Aerospace Solutions is ready to ship what you need, where and when you need it. Our products are factory-new, fully traceable to the original manufacturer, and delivered through our global network to provide seamless service wherever you may be. Photo courtesy of KLX Aerospace Solutions

The sale is expected to close by 3Q 2018.

The transaction is also subject to the successful divestment and separation of KLX Inc.'s Energy Services Group.

Photo courtesy of KLX Aerospace Solutions

About KLX Inc.'s Aerospace Solutions Group

With approximately 2,000 employees, KLX Inc.'s Aerospace Solutions Group is headquartered in Miami with customer service centers located in more than 15 countries. 

As a major independent provider of new aviation parts and related aftermarket services, KLX Inc. markets and distributes products for approximately 2,400 manufacturers and offers approximately 1 million catalog items.

https://www.klxaerospace.com/klxaero/  


About Boeing

Boeing is the world's largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems.
Boeing is also the world leader in combined commercial airlines and government services with customers in more than 150 countries.

The company's products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.

Boeing employs approximately 140,000 people across the United States and in more than 65 countries.

http://www.boeing.com/  


Contact

Chaz Bickers
Boeing Communications
charles.n.bickers@boeing.com  
312-544-2002


SOURCE Boeing

http://boeing.mediaroom.com/  



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