Boeing lines up acquisition of aerospace firm KLX
Leading US aerospace company Boeing is reportedly nearing a deal that will see the firm acquiring fellow industry operator KLX, the Wall Street Journal reports.
The news comes in the wake of KLX stating that it would be exploring strategic options moving forward late last year that could include the sale of certain assets or the company as a whole.
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KLX’s shares jumped 8% off the back of the announcement to almost $80, whilst Boeing’s stock price remained flat at over $340 per share.
The sources that spoke to the Wall Street Journal expect that a deal may be announced during the course of the coming week.
An acquisition of KLX would both complement Boeing’s fast-growing services business, whilst also being likely to bring more of the firm’s production and manufacturing processes in house.
The company’s services business, launched last year, recorded a revenue of $14.6bn, with the Boeing hoping that this climbs to over $50bn within the next decade.
The news follows the firm’s CEO Dennis Muilenburg revealing in March that Boeing was also looking to acquire Brazilian aerospace firm Embraer, with a deal having not yet come to fruition.
