Boeing Co. announced its biggest acquisition Monday in nearly a decade, agreeing to acquire aviation parts and services company Aviall Inc. for $1.7 billion in cash in a deal aimed at increasing its already large stakes in commercial and military aviation markets.
If the deal is approved by regulators, Aviall will become a wholly owned subsidiary reporting to Boeing's commercial aviation services unit. Aviall is based in Dallas and has about 1,000 employees.
Boeing agreed to pay $48 a share for Aviall, a 27.3 percent premium to Aviall's closing price of $37.70 on Friday. It also will assume $350 million in debt.
Aviall's shares leaped $9.30 or 24.7percent, to $47 in morning trading on the New York Stock Exchange, while Boeing shares rose 8 cents to $83.53, one week after hitting an all-time high of $87.25.
Boeing said the acquisition, which is anticipated to close by the end of the third quarter, is expected to boost earnings modestly in 2007 and have no effect this year.
Aviall's businesses include global parts distribution and supply chain services for aerospace, defense and marine industries worldwide. Its 2005 revenue totaled $1.3 billion, and Boeing said it expects 25 percent growth in 2006.
My apologies if this has already been discussed, but my seach didn't discern anything. If this is a duplicate thread, please delete. Thank you.