Boeing expects the transaction to be earnings neutral through 2019
KLX’s Aerospace Solutions Group business will become part of Boeing Global Services and will be joined with Boeing’s parts and services unit, Aviall. Boeing expects the transaction to be earnings neutral through 2019.
Boeing is looking to develop and expand its maintenance and services business and to triple the sales at this division to $50 billion over the next 10 years. As part of this goal, the airplane maker has been looking for suitable acquisitions. Boeing sees significant growth opportunity in the services sector and the company is also exploring avionics, which comprises electronic communication and navigation equipment.
The aerospace company’s efforts to reduce dependency on third-party vendors for parts and equipment have ruffled suppliers who depend on these services for a majority of their profits. This deal is a significant one for Boeing and it is expected to be beneficial to its supply chain and customers going forward.