VSE Corp. To Buy Four Business Units Of Killick Aerospace - Quick Facts

(RTTNews) - VSE Corp. (VSEC) said it has signed a definitive agreement to acquire four business units from Killick Aerospace Group, consisting of Prime Turbines - including both U.S. and Germany-based operations, CT Aerospace, Kansas Aviation, and Air Parts & Supply Co.

The companies to be acquired specialize in maintenance, repair and overhaul or MRO services and parts supply for corporate and regional jet aircraft engines and engine accessories. VSE Corp. noted that the acquisition will extend its supply chain management and MRO to the aviation market.

The initial purchase price payable upon the closing is about $184 million in cash. The purchase agreement includes potential post-closing payments of up to $40 million if CT Aerospace, Kansas Aviation, and Air Parts & Supply Co. exceed certain thresholds of earnings before interest, taxes, depreciation and amortization during the first two years after the closing.

Further, the deal includes one additional post closing payment of $5 million if such companies surpass a certain EBITDA threshold during any 12-consecutive month period in 2014 and 2015.