VSE Corporation Completes Kellstrom Aerospace Acquisition
VSE (NASDAQ: VSEC) has completed its acquisition of Kellstrom Aerospace Group, a global distributor and service provider in the commercial aerospace engine aftermarket. The transaction, valued at approximately $185 million in cash plus 172,414 common shares, strengthens VSE's OEM-centric value proposition and expands its distribution and MRO capabilities. The cash portion was funded through a combination of October's public offering proceeds and existing credit facility borrowings.
Kellstrom's engine-focused products, repair services, and technical advisory capabilities complement VSE Aviation's business, positioning the combined entity to better serve global aerospace aftermarket customers.
VSE (NASDAQ: VSEC) ha completato l'acquisizione di Kellstrom Aerospace Group, un distributore e fornitore di servizi globale nel settore dell'aftermarket dei motori aeronautici commerciali. La transazione, del valore di circa 185 milioni di dollari in contanti più 172.414 azioni ordinarie, rafforza la proposta di valore centrata sull'OEM di VSE ed espande le sue capacità di distribuzione e MRO. La parte in contante è stata finanziata attraverso una combinazione dei proventi dell'offerta pubblica di ottobre e dei prestiti dell'attuale linea di credito.
I prodotti focalizzati sui motori di Kellstrom, i servizi di riparazione e le capacità di consulenza tecnica completano l'attività di VSE Aviation, posizionando l'entità combinata per servire meglio i clienti globali dell'aftermarket aerospaziale.
VSE (NASDAQ: VSEC) ha completado su adquisición de Kellstrom Aerospace Group, un distribuidor y proveedor de servicios global en el mercado secundario de motores de aviación comercial. La transacción, valorada en aproximadamente 185 millones de dólares en efectivo más 172,414 acciones ordinarias, refuerza la propuesta de valor centrada en OEM de VSE y amplía sus capacidades de distribución y MRO. La parte en efectivo se financió mediante una combinación de los ingresos de la oferta pública de octubre y los préstamos existentes de la línea de crédito.
Los productos enfocados en motores de Kellstrom, los servicios de reparación y las capacidades de asesoría técnica complementan el negocio de VSE Aviation, posicionando a la entidad combinada para servir mejor a los clientes del mercado secundario aeroespacial global.
VSE (NASDAQ: VSEC)는 항공 우주 엔진 애프터마켓의 글로벌 유통업체이자 서비스 제공업체인 Kellstrom Aerospace Group의 인수를 완료했습니다. 이번 거래는 약 1억 8500만 달러 현금 및 172,414 주식의 가치를 지니고 있으며, VSE의 OEM 중심 가치 제안을 강화하고 유통 및 MRO 능력을 확장합니다. 현금 부분은 10월의 공모에서 얻은 수익과 기존 신용 시설 대출의 조합을 통해 마련되었습니다.
Kellstrom의 엔진 중심 제품, 수리 서비스 및 기술 자문 능력은 VSE Aviation 비즈니스를 보완하여 통합된 조직이 글로벌 항공 우주 애프터마켓 고객을 더 잘 지원할 수 있도록 합니다.
VSE (NASDAQ: VSEC) a finalisé son acquisition de Kellstrom Aerospace Group, un distributeur mondial et fournisseur de services dans le secteur des moteurs d'aviation commerciaux après-vente. La transaction, d'une valeur d'environ 185 millions de dollars en espèces et 172.414 actions ordinaires, renforce la proposition de valeur centrée sur les OEM de VSE et élargit ses capacités de distribution et de MRO. La partie en espèces a été financée par une combinaison des revenus de l'offre publique d'octobre et des emprunts de la ligne de crédit existante.
Les produits axés sur les moteurs de Kellstrom, les services de réparation et les capacités de conseil technique complètent l'activité VSE Aviation, positionnant l'entité combinée pour mieux servir les clients du marché après-vente aéronautique mondial.
VSE (NASDAQ: VSEC) hat die Übernahme der Kellstrom Aerospace Group abgeschlossen, einem globalen Distributor und Dienstleister im Bereich der kommerziellen Luftfahrt-Motoren-Aftersales. Die Transaktion, die mit etwa 185 Millionen Dollar in bar sowie 172.414 Stammaktien bewertet wird, stärkt VSEs OEM-zentrierten Wertvorschlag und erweitert seine Vertriebs- und MRO-Fähigkeiten. Der Baranteil wurde durch eine Kombination von den Erlösen aus dem öffentlichen Angebot im Oktober und bestehenden Kreditlinien finanziert.
Die motorzentrierten Produkte, Reparaturdienste und technischen Beratungsfähigkeiten von Kellstrom ergänzen das Geschäft von VSE Aviation und positionieren die kombinierte Einheit besser, um globale Kunden im Aftermarket für die Luftfahrt zu bedienen.
- Strategic acquisition expanding presence in commercial engine aftermarket
- Transaction value of $185 million plus stock indicates significant market position
- Enhances product portfolio with complementary engine-focused offerings
- Strengthens OEM-centric value proposition
- Expands distribution and MRO capabilities
- Significant cash outlay of $185 million may impact short-term liquidity
- Additional debt taken through credit facility borrowings
- Shareholder dilution through issuance of 172,414 new shares
Insights
This strategic acquisition marks a significant expansion in VSE's commercial aviation aftermarket presence. The
Kellstrom's engine-focused products and repair services complement VSE Aviation's existing capabilities, creating meaningful revenue synergy opportunities. The deal enhances VSE's OEM relationships and expands its technical advisory services, positioning the company for stronger growth in the commercial aerospace maintenance sector. The timing aligns well with the aviation industry's recovery and increasing demand for aftermarket services.
This acquisition strategically positions VSE in the growing commercial engine aftermarket, which is experiencing robust demand due to aging aircraft fleets and increased maintenance requirements. Kellstrom's established relationships with OEMs and its proprietary engine solutions provide VSE with enhanced market access and technical capabilities that are difficult to replicate organically.
The combination creates a stronger competitive position in the fragmented aviation aftermarket, where scale and comprehensive service offerings are increasingly important. The cultural alignment and complementary capabilities mentioned suggest potential for smooth integration and quick realization of synergies, critical factors for success in aerospace acquisitions.
Acquisition Expands VSE Aviation’s Presence in the Growing Commercial Engine Aftermarket
MANAGEMENT COMMENTARY
“Today represents the next step in the VSE Aviation product and services growth strategy, with a clear opportunity to profitably grow our business and better serve our global aerospace aftermarket customers,” said John Cuomo, President and CEO of VSE Corporation. “The acquisition of Kellstrom Aerospace strengthens our OEM-centric value proposition and demonstrates our commitment to growing our distribution and MRO capabilities in the growing commercial aerospace aftermarket. Kellstrom’s successful track record of supporting a diverse group of global OEM partners through its portfolio of proprietary engine-focused products and repair services, along with its technical advisory capabilities, is highly complementary to VSE Aviation’s business. We are confident that the combination of our respective businesses will drive significant value to our customers and supplier partners.”
“We are excited to welcome the talented team of Kellstrom employees to the VSE Aviation family,” stated Ben Thomas, President of VSE Aviation. “By combining the teams, products, and service offerings of VSE Aviation and Kellstrom, we will provide more comprehensive solutions to benefit our customers and suppliers in a meaningful way. Our strong cultural alignment, complementary capabilities and shared service focus on the aviation aftermarket will allow us to capitalize on the significant growth opportunities ahead.”
AGREEMENT TERMS
VSE acquired Kellstrom for approximately
ADVISORS
Jones Day served as legal counsel and Jefferies, LLC acted as exclusive financial advisor to VSE Corporation with respect to the Kellstrom acquisition. Kirkland & Ellis LLP served as legal counsel and Perella Weinberg Partners served as exclusive financial advisor to Kellstrom.
ABOUT VSE CORPORATION
VSE is a leading provider of aftermarket distribution and repair services. Operating through its two key segments, VSE significantly enhances the productivity and longevity of its customers' high-value, business-critical assets. The Aviation segment is a leading provider of aftermarket parts distribution and maintenance, repair, and overhaul (MRO) services for components and engine accessories to commercial, business, and general aviation operators. The Fleet segment specializes in part distribution, engineering solutions, and supply chain management services catered to the medium and heavy-duty fleet market. For more detailed information, please visit VSE's website at www.vsecorp.com.
ABOUT KELLSTROM AEROSPACE GROUP, INC.
Kellstrom is a leading full-service aftermarket solutions provider of value-added distribution and technical services for the commercial aerospace engine aftermarket. Differentiated by a highly technical, high-touch global sales and product line management organization, Kellstrom supports over 30 OEMs and approximately 800 customers, including airlines, air cargo operators, lessors, OEMs, and MROs across 75 countries.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including statements regarding expected benefits of the acquisition of Kellstrom. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause VSE’s actual results to vary materially from those indicated or anticipated by such statements. Many factors could cause actual results and performance to be materially different from any future results or performance, including, among others, our ability to realize the expected benefits of the acquisition of Kellstrom and the risk factors described in our reports filed or expected to be filed with the SEC. Any forward-looking statement or statement of belief speaks only as of the date of this press release. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241202773045/en/
INVESTOR RELATIONS CONTACT:
Michael Perlman
Vice President of Investor Relations and Treasury
Phone: (954) 547-0480
Email: investors@vsecorp.com
Source: VSE Corporation
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