VSE acquires aviation units
VSE Corp. has finalized its purchase of four aviation units from Killick Aerospace Group.
The purchase will expand Alexandria-based VSE's supply chain management and maintenance, repair and overhaul services capabilities to the aviation market. The purchase adds another service offering for federal clients.
The $189 million cash purchase includes Prime Turbines, CT Aerospace, Kansas Aviation of Independence and Air Parts & Supply Co.
The combined sales and income before taxes are estimated to be $111 million and $22 million for the four units, which have 196 employees.
In connection with its acquisition, VSE amended a loan agreement with its bank group to extend the agreement for five years and increase the commitment to $300 million, which consists of a $150 million revolving credit facility and $150 million term loan facility.
VSE received legal advice from Arent Fox LLP in Washington, D.C. Citizens Bank provided financial advisory services to VSE and arranged financing for the acquisition. The Killick Aerospace Group was advised by Wells Fargo Securities LLC (financial adviser) as well as legal advisors Dentons USA LLP and Osler, Hoskin & Harcourt LLP.