Why Boeing and KLX Stock Reacted Negatively to the Deal
Boeing’s $3.2 billion purchase price of KLX Aerospace Solutions comprised ~16.0x of the segment’s EBITDA in fiscal 2017.
Why Boeing Sought to Acquire KLX’s Aerospace Solutions
KLX’s (KLXI) Aerospace Solutions segment generated ~61% of its fiscal 2017 revenues supporting original equipment manufacturers of commercial and military aircraft.
A Snapshot of KLX’s Aerospace Solutions Segment
For the fiscal year ended January 31, 2018, KLX had total revenues of ~$1.7 billion, up 16.5% year-over-year.
Manitowoc to spin off after activist pressure
In its 8K filing with the SEC on January 29, Manitowoc announced that it will split its cranes and foodservice businesses.
How will KLX Energy Services Group perform in an oil downturn?
The US has 223 billion barrels of technically recoverable shale oil reserves and 2,431 trillion cubic feet of recoverable shale gas reserves.
A snapshot of the KLX Aerospace Solutions Group
Most industry analysts believe the outlook for new aircraft deliveries will be strong for the foreseeable future, which bodes well for KLX Aerospace.
Overview of KLX after spin-off from B/E Aerospace
KLX Aerospace Solutions Group accounted for 76% of LTM pro forma revenue, making it the world’s leading distributor of aerospace fasteners and consumables.
New B/E Aerospace’s 2014 results after spin-off
BEAV’s 1Q15 revenues should increase by 8%. EPS should increase by 16% to $0.72. New customers include Boeing, United Technologies, and Southwest Airlines.
How KLX Inc. compares to its peers
KLX expects tax goodwill of $1.2 billion to provide cash tax savings of $254–$277 million for the next 15 years.