VSE Corporation has finalised its acquisition of Kellstrom Aerospace Group (Kellstrom), a global distributor and service provider in the commercial aerospace engine aftermarket and a portfolio company of AE Industrial Partners, LP.
“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.”
The acquisition was valued at approximately US$185 million in cash and 172,414 common shares of VSE Corporation, subject to working capital adjustments. The cash component was financed using proceeds from VSE's October public offering of common stock and borrowings under its existing credit facility.
