On Tuesday, May 1, aircraft maker Boeing said it will buy aerospace parts company KLX for about US$3.2 billion in cash and US$1 billion in debt to expand its aircraft services business, Bloomberg reported, contingent on KLX spinning off its energy business.
The deal is the largest struck so far by Chief Executive Officer Dennis Muilenburg, who has been scouting acquisitions that would more than triple sales at Boeing’s services business to US$50 billion within a decade. Boeing has held preliminary talks with partsmaker Woodward, according to media reports in February, and is deep into talks to form a joint venture that would give it control of Embraer SA’s commercial jets.
KLX will become part of Boeing Global Services and will be fully integrated with the planemaker’s parts subsidiary, Aviall, with an anticipated annual cost savings of US$70 million by 2021, according to Bloomberg.
“We continue to see global services as our biggest market-growth opportunity,” Muilenburg told reporters at the company’s annual meeting Monday, hours before the deal was announced. The transaction will be financed primarily with cash on hand, supplemented with debt.
Full Content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK Probes Lindab’s Acquisition of HAS-Vent Amid Fears of Market Monopoly
Apr 28, 2024 by
CPI
Shein Faces EU Regulations Over User Data
Apr 28, 2024 by
CPI
Google Fights Back Against US Antitrust Lawsuit
Apr 28, 2024 by
CPI
US Homeland Security Establishes Blue-Ribbon Board with Tech CEOs to Advise on AI
Apr 28, 2024 by
CPI
FTC Accuses Amazon Executives of Using Disappearing Messaging Apps to Conceal Evidence
Apr 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI