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

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 08.17.17

Airborne 08.21.17

Airborne 08.22.17

Airborne 08.16.17

Airborne 08.17.17

Airborne 08.18.17

Airborne-Unmanned 08.15.17

Airborne-YouTube

AMA 08.17.17

Airborne 08.21.17

Airborne 08.22.17

Airborne 08.16.17

Airborne 08.17.17

Airborne 08.18.17

Airborne-Unmanned 08.15.17

NEW!!! 2017 AirVenture Innovation Preview -- YouTube Presentation / Vimeo Presentation

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

ANN's Daily Aero-Term (08.20.17): Maximum Authorized Altitude

Maximum Authorized Altitude A published altitude representing the maximum usable altitude or flight level for an airspace structure or route segment. It is the highest altitude on >[...]

Airborne-Unmanned 08.15.17: Reno Drone Races, DoD CrackDown, Blue Angels v UAV?

Also: Kansas DOT-AirMap, CIRRUAS Drone Program, Daytona Beach PD UAS, Virginia UAS SAR The Reno Air Racing Association has signed an agreement with the MultiGP Drone Racing League >[...]

AMA Drone Report 08.17.17: MULTI-GP Int'l Open, Drone v Chicago, Reno Drone Race

Also: Yuneec Extended Service Plan, UAV on A/C Carrier, Blue Angels Incident, Drone Operator Safety Act MultiGP’s 2017 MultiGP International Open, conducted on the grounds of>[...]

ANN's Daily Aero-Linx (08.21.17)

Aero Linx: Women Military Aviators, Inc. The organization called the Women Military Aviators, Inc. was formed by two groups of women pilots separated by 39 years of history. The fi>[...]

Airborne 08.18.17: NBAA v KSMO, Sully Attacked, DB Cooper Update

Also: New NASA Admin?, Anti-Aviation Hypocrites, Airberlin, Sky Hopper, Drone v Carrier, Jet Aviation, Airman Retires The NBAA joined five other stakeholders to file a brief with t>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC