Boeing Announces Plans To Buy Parts Supplier Aviall | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 09.26.16

Airborne 09.27.16

Airborne 09.28.16

Airborne 09.29.16

Airborne 09.30.16

Airborne Hi-Def On YouTube

Airborne 09.26.16

Airborne 09.27.16

Airborne 09.28.16

Airborne 09.29.16

Airborne 09.30.16

Mon, May 01, 2006

Boeing Announces Plans To Buy Parts Supplier Aviall

Merger Expected To Be Approved By Q3 2006

Last week, Aero-News reported that Boeing -- helped by a very strong showing of its commercial aircraft division in the first quarter of 2006 -- took in 29 percent increase in profit over the same period in 2005. On Monday, Boeing announced its plans to spend some of its cash -- by purchasing aerospace parts and services provider Aviall, Inc.

Under terms of the all-cash acquistion, Boeing is purchasing Dallas, TX-based Aviall for $48 per share -- or $1.7 billion. Boeing will also assume approximately $350 million of net debt as part of the transaction. Aviall's 2005 revenue was $1.3 billion, with more than 25 percent growth expected in 2006.

"The aviation services market offers us tremendous opportunities to profitably grow our business, internally and externally, to better serve our commercial and military customers," said Boeing Chairman, President and Chief Executive W. James McNerney (right). "This acquisition is uniquely powerful in that it leverages the strong and growing services units of both our commercial and military businesses. It demonstrates our commitment to create a Boeing that is more than just the sum of its parts," McNerney said.

"We are delighted to become part of The Boeing Company," said Paul Fulchino, chairman, president and chief executive officer of Aviall. "Our combined industry knowledge creates a dynamic team that will continue to enable our customers to achieve greater efficiency, operational savings and profitability."

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 the IMM program, Boeing and selected suppliers maintain an airline's inventory of maintenance supplies -- including spare parts -- and provide items only as needed, reducing the airline's cost and complexity of doing business.

Aviall's parts ordering and supply chain management capabilities will also be utilized by Boeing's Integrated Defense Systems' Support Systems business.

"Aviall will quickly become an integral part of our Commercial Aviation Services business and accelerate our Integrated Materials Management program," said Alan Mulally, Boeing Commercial Airplanes president and CEO.

"Aviall is customer focused, has a strong growth plan and proven track record of solid financial performance. It is a perfect fit for our strategy of providing supply chain management solutions that help our airline and military customers operate more efficiently and productively," Mulally said.

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. The acquisition is expected to be modestly accretive to Boeing's earnings in 2007 and have an immaterial earnings impact in 2006.

With approximately 1,000 employees, Aviall is the world's largest independent provider of new aviation parts and related aftermarket services. Aviall markets and distributes products for approximately 220 manufacturers and offers approximately 700,000 catalog items.

Aviall also offers a full line of aviation batteries, hoses, wheels and brakes, and paint services.

FMI: www.aviall.com, www.boeing.com

Advertisement

More News

Airborne 09.28.16: NEW DJI Mavic!, EAA's Next STC, Sean Tucker Honored

Also: LA Times v SMO, APS UAT Program, Gordon Bennett 2016, Tucson Control Tower, Hubble Find, Southwest Airlines, Iowa State Another new small unmanned aerial system is now on the>[...]

AeroSports Update: Sean Tucker Is Honored By The CAF

Aerobatic Pilot Sean Tucker Receives The 2016 Lloyd P. Nolen Lifetime Achievement In Aviation Award Aerobatic pilot Sean D. Tucker has been named the recipient of the Lloyd P. Nole>[...]

Elon Musk Outlines Vision For Martian City

Rockets Carrying As Many As 200 People Could Leave For The Neighboring Planet In 'Decades' No one can deny that Elon Musk thinks big, and in a speech at the International Astronaut>[...]

Dutch Investigators Release Findings In MH17 Shootdown

Determines That The Missile 'Came From Russia' The Buk missile that destroyed Malaysia Airlines Flight MH17 over eastern Ukraine in 2014 came from Russia, according to a Dutch-led >[...]

ForeFlight, SiriusXM Introduce Satellite Aviation Weather Service

Weather And Other Key Information Available Using The SXAR1 Portable Receiver Today ForeFlight and SiriusXM introduced SiriusXM Aviation weather service on the newest version of Fo>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC