KLX (KLXI) shares were nearly 5% lower in Tuesday’s pre-market session after the provider of aviation parts and services agreed to be acquired by Boeing (BA) in a deal valued at $4.25 billion.
Boeing is paying $63 per share in cash and assuming about $1 billion of net debt to acquire KLX.
“This acquisition is the next step in our services growth strategy, with a clear opportunity to profitably grow our business and better serve our customers in a $2.6 trillion, 10-year services market,” said Stan Deal, unit CEO at Boeing.
Boeing said the deal would have a neutral impact to earnings through 2019 and boost earnings thereafter, with annual cost savings growing to $70 million by 2021.
The deal is expected to close by Q3, subject to regulatory and shareholder approvals and other customary closing conditions.