VSE Corporation [NASDAQ: VSEC] has announced the acquisition of Global Parts Group, Inc. The firm has bought the Global Parts in an all-cash transaction valued at nearly $38 million dependent on customary working capital adjustments. Global Parts is a completely combined aftermarket distribution and MRO services offeror backing the global business and general aviation (B&GA) market.
This transaction is beneficial for VSE Corporation as the acquisition of Global Parts will better position VSE Aviation as a prominent, inclusive distribution and MRO solution offeror to the B&GA market. Additionally, it will also position VSE as a consolidator of high-quality, complementary B&GA assets.
Furthermore, this deal offers VSE access to more than 3,000 small- and medium-sized business jet customers of Global Parts. It signifies more than 100 platforms. Global Parts generated nearly $65 million in total revenue in 2020. This deal is instantly profitable to VSE’s Aviation segment.
Moreover, the acquisition of VSE Corporation is beneficial for the Aviation segment of the firm. It will considerably increase product distribution offerings and repair capabilities across the various base of global business and general aviation clients.
It has been disclosed that VSE Aviation anticipates generating meaningful revenue opportunities as both new and existing business jet customers utilize the full breadth of integrated repair and distribution expertise. This deal further places VSE as a well-capitalized market consolidator focused on attaining scale efficiencies through organic and inorganic growth.