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
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI