Virginia-based VSE Aviation, Inc., has announced the acquisition of MRO services provider 1st Choice Aerospace, Inc. (1st Choice), an aviation supply chain management company with operations in Florida and Kentucky, the company said.
1st Choice provides component maintenance, repair and overhaul services and products for commercial aircraft families.
The initial purchase price paid at closing was USD 112m in cash. The purchase agreement also includes potential post-closing payments of up to USD 40m if 1st Choice surpasses certain performance thresholds as defined in the purchase agreement during 2019 and 2020.
VSE funded the acquisition with its existing bank revolving loan provided by its lending group led by Citizens Bank, N.A.
VSE said the acquisition of 1st Choice will broaden its client base and further extend its thrust into the commercial aerospace supply chain market.
1st Choice provides MRO services, including pneumatics, fuel, electro-mechanical, electrical accessories, crew seats, interiors, lavatory systems, oxygen systems, cargo systems, and containers.
VSE Aviation, Inc. is a subsidiary of VSE Corp. (NASDAQ: VSEC). VSE Aviation is a family of companies that includes Air Parts and Supply Co., CT Aerospace LLC, Kansas Aviation of Independence LLC, Prime Turbines LLC, VSE Aviation GmbH, and VSE Aviation Singapore PTE LTD that specialize in MRO services and parts supply for commercial, corporate and regional aircraft.
VSE (NASDAQ: VSEC) is a diversified products and services company providing logistics solutions with integrity, agility, and value.
VSE received financial advisory services for the acquisition from Citizens Capital Markets, Inc. and SunTrust Robinson Humphrey. VSE received industry and market due diligence support for the acquisition from Oliver Wyman CAVOK. VSE received legal advice for the acquisition from Arent Fox LLP, Washington, DC. 1st Choice received M and A advisory services from XLS Partners, Inc., Chicago, IL, and legal services from Gunster, West Palm Beach, FL.