Tag Archives: CT Aerospace

VSE Corporation Signs Agreement to Acquire Companies Held by Killick Aerospace

VSE Corporation (VSEC) announced today that 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 (MRO) services and parts supply for corporate and regional jet aircraft engines and engine accessories. The initial purchase price payable upon the closing is approximately $184 million in cash. The purchase agreement also includes potential post-closing payments of up to $40 million if CT Aerospace, Kansas Aviation and Air Parts & Supply Co. surpass certain thresholds of earnings before interest, taxes, depreciation and amortization (“EBITDA”) during the first two years after the closing and 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. Other purchase price adjustments also may be required based on certain post-closing determinations, including in respect of the closing net working capital and certain inventory and equipment.

The four business units combined sales and income before taxes are estimated to be approximately $111 million and $22 million, respectively, for the year ending December 31, 2014. Such estimated results are not necessarily indicative of future financial performance and the actual results of the four business units for 2014 may differ from the estimated results. The four business units have approximately 185 employees.

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VSE Pays $184M for 4 Killick Aerospace Units

The buyer is picking up Prime Turbines, CT Aerospace, Kansas Aviation and Air Parts & Supply Co. All of the companies specializes in maintaining, repairing and overhauling services and part supply for corporate and regional jet aircraft engines and engine accessories. The purchase agreement includes a payment of up to $40 million depending on the target’s Ebitda achievements in the next two years, and potential additional $5 million payments.

Prime Turbines, headquartered in Carrollton, Texas, specializes in repairing Pratt & Whitney Canada and GE Aviation engines. CT Aerospace, also based in Carrollton, supplies engine parts and services to aircraft repair companies. Independence, Kansas-based Kansas Aviation specializes in repairing oil, air and fuel-related engine accessories for gas turbine engines. Air Parts & Supply, headquartered in Miami, supplies parts, including aircraft ignition parts, fuel control parts, starter generators for engines.

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