US-based aerospace fasteners and consumables distributor and value added service provider KLX has acquired Herndon Aerospace & Defense (Herndon) for approximately $210m in cash.
Herndon was created through a joint venture agreement between Herndon Products (HPI) and Polygon Aerospace last year.
The company was formed to serve the commercial aviation and defence industries, as well as provide supply chain management and distributes consumables hardware for commercial aerospace aftermarket customers and military depot aftermarket customers.
With the deal, KLX aims to expand its comprehensive aftermarket supply chain management solutions to a wider group of aftermarket customers.
Herndon’s last calendar year’s revenues and EBITDA, adjusted to exclude non-recurring costs under the prior ownership, were $132.5m and $20.3m respectively.
KLX chairman and chief executive officer Amin Khoury said: "The acquisition is expected to be accretive to our second half of 2016 financial results and substantially accretive to earnings in 2017, as we begin to realise the very significant cost synergies.
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By GlobalData"We expect acquisition, integration and transition costs associated with the transaction, aggregating to approximately $10m through the end of 2017."
