Boeing shares close lower; airline agrees deal for parts maker KLX
Boeing shares ended the US Monday trading session a little lower ahead of news the plane maker has agreed to buy aviation parts maker KLX for $4.25 billion. The all-cash acquisition values KLX at $63 per share and marks the expansion of Boeing’s aviation services provision.
Boeing shares closed 0.02% lower at $336.14, in the US Monday. The stock has moved broadly higher over the past week.
Boeing, KLX deal
KLX Inc is a manufacturer of aviation parts and also provides other aviation services to the industry. The plane maker said KLX will be part of Boeing Global Services and will integrate fully with Availl. The deal is also set to bring cost savings of some $70 million by 2021.
“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 Boeing Global Services president and CEO, Stan Deal.
“By combining the talent and product offerings of Aviall and KLX Inc., we will provide a one-stop-shop that will benefit our supply chain and our various customers in a meaningful way,” Deal added.
KLX was equally positive over the deal.
“The combination of Aviall and KLX Aerospace facilitates the broadest scope of parts and products to support all customer fleet types for the commercial, military and defense and business and general aviation markets,” said KLX CEO Amin Khoury.
“This business combination will enable us to deliver industry-leading value-added service solutions for our customers, and outstanding growth opportunities for our suppliers,” Khoury added.
Uzbekistan Airways confirms Dreamliner order
Separately, Uzbekistan Airways has confirmed its order for a Boeing 787-8 Dreamliner, which has a list price of $239 million.
The airline already operates two Boeing Dreamliners and this confirmed order will see the national airline add five more of the aircrafts to its fleet.
“We are delighted that Uzbekistan Airways continues to show confidence in Boeing's technology and airplanes," said Marty Bentrott, Vice President of Sales for Boeing Commercial Airplanes, for Middle East, Turkey, Russia, Central Asia and Africa.