In This Article:
Acquisition Expands VSE Aviation’s Presence in the Growing Commercial Engine Aftermarket
MIRAMAR, Fla., December 03, 2024--(BUSINESS WIRE)--VSE Corporation ("VSE" or the "Company") (NASDAQ: VSEC), a leading provider of aftermarket distribution and repair services, announced today that the Company has closed its previously announced acquisition of Kellstrom Aerospace Group, Inc. ("Kellstrom"), a portfolio company of AE Industrial Partners, LP and a diversified global distributor and service provider supporting the commercial aerospace engine aftermarket.
MANAGEMENT COMMENTARY
"Today represents the next step in the VSE Aviation product and services growth strategy, with a clear opportunity to profitably grow our business and better serve our global aerospace aftermarket customers," said John Cuomo, President and CEO of VSE Corporation. "The acquisition of Kellstrom Aerospace strengthens our OEM-centric value proposition and demonstrates our commitment to growing our distribution and MRO capabilities in the growing commercial aerospace aftermarket. Kellstrom’s successful track record of supporting a diverse group of global OEM partners through its portfolio of proprietary engine-focused products and repair services, along with its technical advisory capabilities, is highly complementary to VSE Aviation’s business. We are confident that the combination of our respective businesses will drive significant value to our customers and supplier partners."
"We are excited to welcome the talented team of Kellstrom employees to the VSE Aviation family," stated Ben Thomas, President of VSE Aviation. "By combining the teams, products, and service offerings of VSE Aviation and Kellstrom, we will provide more comprehensive solutions to benefit our customers and suppliers in a meaningful way. Our strong cultural alignment, complementary capabilities and shared service focus on the aviation aftermarket will allow us to capitalize on the significant growth opportunities ahead."
AGREEMENT TERMS
VSE acquired Kellstrom for approximately $185 million in cash and 172,414 common shares of the Company, subject to working capital adjustments. The cash purchase price for the acquisition was funded using proceeds from the October public offering of common stock and borrowings under the Company’s existing credit facility.
ADVISORS
Jones Day served as legal counsel and Jefferies, LLC acted as exclusive financial advisor to VSE Corporation with respect to the Kellstrom acquisition. Kirkland & Ellis LLP served as legal counsel and Perella Weinberg Partners served as exclusive financial advisor to Kellstrom.