ALEXANDRIA, Va.--(BUSINESS WIRE)--VSE Corporation (NASDAQ: VSEC), a leading provider of aftermarket distribution and maintenance, repair and overhaul (MRO) services for land, sea and air transportation assets for government and commercial markets, today announced that it has acquired Precision Fuel Components, LLC (“Precision Fuel”), in an all-cash transaction. This transaction is immediately accretive to VSE’s Aviation segment.
Founded in 2001, Washington-based Precision Fuel is a market-leading provider of MRO services for engine accessory and fuel systems supporting the business and general aviation (“B&GA”) market. Precision Fuel specializes in supporting small turbine rotorcraft fuel controls, governors, sensors, bleed valves, and fuel pumps, along with radial engine components and Bendix-Stromberg carburetors. Precision Fuel is a member of the Honeywell Authorized Warranty and Repair Station (AWARS) network.
TRANSACTION RATIONALE
- Expands specialty distribution and MRO capabilities in B&GA and Rotorcraft market. By combining VSE Aviation’s existing part distribution and MRO services with Precision Fuel’s engine accessory and fuel system MRO services, VSE Aviation customers will have access to differentiating, full-service, on-demand repair and distribution solutions.
- Accelerates customer acquisition within B&GA market, building upon recent organic wins. This transaction provides VSE Aviation access to new rotorcraft and fixed wing operator customers and expands VSE’s MRO capabilities within new engine platforms. This acquisition will allow for significant cross-selling opportunities, positioning VSE Aviation to expand its market share within niche, B&GA market adjacencies.
- Further highlights VSE Aviation as an acquiror of choice for high-quality, growing B&GA and Rotorcraft assets with established brands. Given the fragmented nature of the B&GA services industry, this transaction further positions VSE Aviation as a well-capitalized market consolidator focused on driving scale through both organic and inorganic growth.
MANAGEMENT COMMENTARY
“We are pleased to welcome the Precision Fuel team to the VSE Aviation family,” stated John Cuomo, President and CEO of VSE Corporation. “This transaction represents an important strategic investment for our Aviation segment, one that expands our repair capabilities across a diverse base of global rotorcraft, fixed wing, and B&GA customers. Precision Fuel’s value-added, high-margin MRO solutions will complement our existing service capabilities, while positioning us to further enhance our unique value proposition.”
“Precision Fuel’s customer-centric culture, long-term relationships, established OEM partnerships, and proven technical expertise are highly complementary to our existing business,” stated Ben Thomas, President of VSE Aviation. “We look forward to leveraging our expanded suite of solutions across our combined base of customers, while continuing to provide industry-leading, on-demand products and services throughout our growing global footprint.”
ADVISORS
Jones Day served as legal counsel to VSE Corporation. Janes Capital Partners served as financial advisor and Karr Tuttle Campbell served as legal counsel to Precision Fuel Components, LLC.
ABOUT VSE CORPORATION
VSE is a leading provider of aftermarket distribution and repair services for land, sea and air transportation assets for government and commercial markets. Core services include MRO services, parts distribution, supply chain management and logistics, engineering support, and consulting and training services for global commercial, federal, military and defense customers. VSE also provides information technology and energy consulting services. For additional information regarding VSE's products and services, visit www.vsecorp.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause VSE's actual results to vary materially from those indicated or anticipated by such statements. Many factors could cause actual results and performance to be materially different from any future results or performance, including, among others, the risk factors described in our reports filed or expected to be filed with the SEC. Any forward-looking statement or statement of belief speaks only as of the date of this press release. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
