Boeing Completes Acquisition of Leading Aerospace Parts Distributor KLX Inc. to Enhance Growing Services Business
CHICAGO, Oct. 9, 2018 /PRNewswire/ -- Boeing [NYSE: BA] announced today that it has completed its acquisition of KLX Aerospace Solutions to enhance its growing services business and deliver greater value to its customers. The acquisition positions Boeing to compete and win in the $2.8 trillion, 10-year aerospace services market.
KLX, a major global provider of aviation parts and services in the aerospace industry, provides a clear path for Boeing's services business to accelerate growth. Its capabilities include distribution and supply chain services. KLX currently markets and distributes products for approximately 2,400 manufacturers and offers approximately 1 million catalog items.
KLX is also a leading supplier of chemicals and composites, which complements Aviall's portfolio, allowing Boeing to offer commercial, defense, business and general aviation customers a broader range of offerings.
"This acquisition brings together the talent and product offerings of Boeing and KLX to provide a one-stop shop that will allow us to create significant value for our customers. There are also extensive opportunities for services growth and innovation for Boeing and our supply chain that is unique to the industry," said Stan Deal, president and CEO of Boeing Global Services. "The resulting boost in supply chain capability will allow us to better serve our customers while profitably and purposefully growing our business."
With approximately 2,000 employees, KLX Aerospace Solutions will continue to operate from Miami with customer service centers located in more than 15 countries.
The acquisition is aligned with Boeing's organic growth strategy, with no change to Boeing's capital deployment strategy or commitment to returning approximately 100 percent of free cash flow to shareholders.
Boeing is the world's largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems. Boeing is also the world leader in combined commercial airlines and government services with customers in more than 150 countries. The company's products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing employs approximately 140,000 people across the United States and in more than 65 countries.
Forward-Looking Information Is Subject to Risk and Uncertainty
Certain statements in this release may be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected timetable for completing the transaction, future business prospects, and benefits and synergies of the transaction, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially from these forward-looking statements. As a result, these statements speak only as of the date they are made and we undertake no obligation to update or revise any forward-looking statement, except as required by law. Specific factors that could cause actual results to differ materially from these forward-looking statements include the effect of global economic conditions, our ability to successfully integrate KLX's business and realize anticipated synergies, and other important factors disclosed previously and from time to time in reports filed by Boeing and KLX with the Securities and Exchange Commission.