Boeingannounced today that it reached an agreement to acquire Aerospaceparts distributor Klxfor $4.25 billion as it boosts its Aviationservices business.
Boeingexecutives described the move as a significant step in bolstering its global services segment, which was launched last year and aims to increase annual revenues from $15 billion in 2017 to $50 billion in five years.
"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, Chief Executiveof BoeingGlobal Services.
Miami, Florida-based Klxprovides Aerospaceparts and services to commercial, business and defense jet customers worldwide, shipping a majority of goods within 24 hours of the order, according to a Klxsecurities filing.
Klxreported $1.7 billion in revenues in 2017.
Under the all-cash deal, Boeingvalues Florida-based Klxat $63 per share and will assume $1 billion in debt.
Klxwill divest its Energy Servicesbusiness, which provides Oilfield Toolsand services to the Oilbusiness.
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