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Boeing buys aviation parts company KLX for $4.25 billion

Boeing Executives Described The Move As Significant In Boosting Its Global Services Segment, Which Was Launched In 2017. The Company Aims To Increase Annual Revenues From $15 Billion In 2017 To $50 Billion In Five Years.

News Nation Bureau | Edited By : Abhishek Ranjit | Updated on: 01 May 2018, 07:50:41 PM
Boeing buys aviation parts company KLX for $4.25 billion (Source-PTI)

New Delhi:

Boeing on Tuesday announced an agreement to acquire aerospace parts distributor KLX for $4.25 billion.

Boeing executives described the move as significant in boosting its global services segment, which was launched in 2017. The company aims to increase annual revenues from $15 billion in 2017 to $50 billion in five years.

“This acquisition is the next step in our services growth strategy, with a clear opportunity to profitably grow our business and better serve our customers in a $2.6 trillion, 10-year services market,” said Stan Deal, chief executive of Boeing Global Services.

Florida-based KLX provides aerospace parts and services to commercial, business and defense jet customers worldwide, shipping a majority of goods within 24 hours of the order, according to a KLX securities filing.

KLX reported $1.7 billion in revenues in 2017.

Under the all-cash deal, Boeing values Florida-based KLX at $63 per share and will assume $1 billion in debt. KLX will divest its energy services business, which provides oilfield tools and services to the oil business, according to AFP.

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First Published : 01 May 2018, 07:50:20 PM

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