VSE Corporation Completes Sale of Fleet Segment
VSE (NASDAQ: VSEC) has completed the sale of its Fleet business segment, Wheeler Fleet Solutions, to One Equity Partners (OEP) for up to $230 million in total consideration. The transaction marks VSE's strategic transformation into a pure-play aviation aftermarket parts and services provider.
The deal structure includes:
- $140 million cash payment at closing
- $25 million seller note
- Up to $65 million in additional contingent earnout consideration
VSE plans to utilize the initial cash proceeds to repay outstanding borrowings under its revolving loan facility. Jones Day and Jefferies, served as legal counsel and exclusive financial advisor, respectively, for the transaction.
VSE (NASDAQ: VSEC) ha completato la vendita del suo segmento di business Fleet, Wheeler Fleet Solutions, a One Equity Partners (OEP) per un totale che può arrivare fino a 230 milioni di dollari. La transazione segna la trasformazione strategica di VSE in un fornitore esclusivo di parti e servizi aftermarket per l'aviazione.
La struttura dell'accordo include:
- 140 milioni di dollari di pagamento in contante al momento della chiusura
- 25 milioni di dollari di nota del venditore
- Fino a 65 milioni di dollari in ulteriori considerazioni di earnout contingent
VSE prevede di utilizzare i proventi iniziali in contante per ripagare i prestiti in essere sotto la sua linea di credito revolving. Jones Day e Jefferies hanno svolto rispettivamente il ruolo di consulente legale e consulente finanziario esclusivo per la transazione.
VSE (NASDAQ: VSEC) ha completado la venta de su segmento de negocio Fleet, Wheeler Fleet Solutions, a One Equity Partners (OEP) por un total de hasta 230 millones de dólares. La transacción marca la transformación estratégica de VSE en un proveedor exclusivo de piezas y servicios de posventa para la aviación.
La estructura del acuerdo incluye:
- 140 millones de dólares de pago en efectivo al cierre
- 25 millones de dólares en nota del vendedor
- Hasta 65 millones de dólares en consideraciones adicionales de earnout contingente
VSE planea utilizar los ingresos iniciales en efectivo para pagar los préstamos pendientes bajo su línea de crédito revolving. Jones Day y Jefferies actuaron como asesores legales y asesores financieros exclusivos, respectivamente, para la transacción.
VSE (NASDAQ: VSEC)는 Wheeler Fleet Solutions의 Fleet 사업 부문을 One Equity Partners (OEP)에 최대 2억 3천만 달러에 판매 완료했습니다. 이 거래는 VSE의 전략적 변화를 항공 애프터마켓 부품 및 서비스 제공업체로 전환하는 것을 의미합니다.
거래 구조에는 다음이 포함됩니다:
- 마감 시 1억 4천만 달러의 현금 지급
- 2천5백만 달러의 판매자 노트
- 최대 6천5백만 달러의 추가 조건부 수익금
VSE는 초기 현금 수익을 사용하여 회전 대출 시설의 미지급 대출을 상환할 계획입니다. Jones Day와 Jefferies는 각각 법률 자문 및 독점 재무 자문 역할을 수행했습니다.
VSE (NASDAQ: VSEC) a finalisé la vente de son segment d'activité Fleet, Wheeler Fleet Solutions, à One Equity Partners (OEP) pour un montant total pouvant atteindre 230 millions de dollars. Cette transaction marque la transformation stratégique de VSE en un fournisseur exclusif de pièces et de services après-vente pour l'aviation.
La structure de l'accord comprend :
- 140 millions de dollars de paiement en espèces à la clôture
- 25 millions de dollars de note du vendeur
- Jusqu'à 65 millions de dollars de considérations d'earnout contingent supplémentaires
VSE prévoit d'utiliser les recettes initiales en espèces pour rembourser les emprunts en cours dans le cadre de sa facilité de crédit renouvelable. Jones Day et Jefferies ont respectivement agi en tant que conseiller juridique et conseiller financier exclusif pour la transaction.
VSE (NASDAQ: VSEC) hat den Verkauf seines Geschäftsbereichs Fleet, Wheeler Fleet Solutions, an One Equity Partners (OEP) für insgesamt bis zu 230 Millionen US-Dollar abgeschlossen. Die Transaktion markiert die strategische Transformation von VSE zu einem reinen Anbieter von Aftermarket-Teilen und -Dienstleistungen für die Luftfahrt.
Die Struktur des Deals umfasst:
- 140 Millionen US-Dollar Barzahlung bei Abschluss
- 25 Millionen US-Dollar Verkäufernote
- Bis zu 65 Millionen US-Dollar zusätzliche bedingte Earnout-Überlegungen
VSE plant, die anfänglichen Barerlöse zur Rückzahlung ausstehender Darlehen aus seiner revolvierenden Kreditfazilität zu verwenden. Jones Day und Jefferies fungierten als rechtliche Berater bzw. exklusive Finanzberater für die Transaktion.
- Strategic transformation to focused pure-play aviation aftermarket business
- Substantial cash infusion of $140 million at closing
- Potential additional earnings of up to $65 million through earnout
- Debt reduction through repayment of revolving loan facility
- Divestment of significant revenue-generating Fleet segment
- Reduced business diversification with focus on single sector
Sale Completes Strategic Portfolio Transformation to a Pure-Play Aviation Aftermarket Parts and Services Provider
“The sale of our Fleet business marks the completion of VSE’s strategic transformation into a pure-play aviation aftermarket parts and services provider,” said John Cuomo, President and CEO of VSE Corporation. “With our full focus now on the aviation aftermarket, we are well-positioned to capitalize on significant growth opportunities and drive long-term value for our customers, employees, and shareholders. I want to thank the Wheeler Fleet Solutions team for their dedication and contributions over the years. We wish them continued success as part of OEP.”
VSE intends to use the initial cash proceeds from the sale of the Fleet segment to repay outstanding borrowings under its revolving loan facility.
TRANSACTION OVERVIEW
VSE sold the Fleet Segment to OEP for a total consideration of up to
ADVISORS
Jones Day served as legal counsel and Jefferies, LLC acted as exclusive financial advisor to VSE Corporation with respect to the Fleet segment sale.
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 ONE EQUITY PARTNERS
One Equity Partners (“OEP”) is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including statements regarding the expected timing and benefits of the proposed disposition of VSE’s Fleet Segment. 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 satisfy all required closing conditions and complete the proposed disposition of VSE’s Fleet segment, our ability realize the expected benefits of the proposed disposition 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/20250331401460/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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