Boeing and Aviall have announced that they have entered into a definitive agreement for Boeing’s acquisition of Aviall in an all cash merger worth $1.7 billion, or $48 per share. Boeing will also assume approximately $350 million of net debt as part of the transaction.
Aviall is the largest independent provider of new aviation parts and services in the aerospace industry. It carries out global parts distribution and supply chain services for aerospace, defence and marine industries worldwide. Aviall’s 2005 revenue was $1.3 billion, with more than 25 percent growth expected in 2006.
Aviall will report to Boeing Commercial Aviation Services and operate as a wholly owned subsidiary. Commercial Aviation Services offers Integrated Materials Management (IMM) services to airline customers. Through IMM, Boeing and selected suppliers maintain an airline’s inventory of maintenance supplies, including spare parts, and provide items only as needed. Aviall’s parts ordering and supply chain management capabilities will also be used by Boeing’s Integrated Defense Systems’ Support Systems business.
The completion of the transaction is subject to customary conditions and relevant authorities’ approval and is expected to close by the end of the third quarter 2006. Boeing plans to fund the transaction with existing cash.
With approximately 1,000 employees, Aviall is headquartered in