Aftermarket distribution and MRO company VSE Corporation has acquired privately held Global Parts Group in an all-cash transaction valued at approximately US$38 million. The deal is subject to customary working capital adjustments.
Global Parts is a fully integrated aftermarket distribution and MRO services provider supporting the global business and general aviation market. Global Parts’ distribution business focuses on supporting airframe components, while its repair capabilities extend to hydraulics and pneumatics.
The transaction gives VSE access to Global Parts’ more than 3,000 small- and medium-sized business jet customers, representing more than 100 platforms. VSE Aviation said it expected to generate meaningful revenue opportunities “as both new and existing business jet customers leverage the full breadth of combined repair and distribution capabilities”.
“We are pleased to welcome the Global Parts team to the VSE family,” said VSE’s president and CEO John Cuomo. “This transaction represents an important strategic investment for our aviation segment, which significantly expands product distribution offerings and repair capabilities across a diverse base of global business and general aviation customers.
“Global Parts’ customer service-focused culture, long-term customer relationships, OEM supplier partnerships, consistent financial performance, and proven technical expertise are highly complementary to our existing business, providing the opportunity for both revenue and margin enhancement opportunities over a multi-year period.”
VSE Aviation’s president Ben Thomas commented: “We view the business and general aviation market as a significant long-term opportunity for our business. By bringing together Global Parts with our recently announced Pratt and Whitney Canada engine accessory distribution agreement and existing distribution and MRO offerings, we’ve laid a solid foundation to build a sustainable and profitable business of scale in this market.
“Business jet customers want a single end-to-end solution capable of providing them with replacement parts and MRO services on a 24/7 AOG basis. With the addition of Global Parts, VSE is well-equipped to meet the stringent, real-time demands of business jet owner-operators, positioning us to take share and drive growth into the ongoing aviation recovery.”