WELLINGTON, Fla., Oct. 20, 2016 (GLOBE NEWSWIRE) -- KLX Inc. (“KLX”) (NASDAQ:KLXI), the world’s leading distributor and value added service provider of aerospace fasteners and consumables, and a provider of services and products for the oil and gas industry, announces a major new business award for its Aerospace Solutions Group (“ASG”) business.
The United States Department of Defense (“DOD”), Defense Logistics Agency (“DLA”) has awarded KLX a logistics services contract to provide a broad range of aftermarket products and services to the Corpus Christi Army Depot (“CCAD”). The initial contract funding provides for up to $135 million over the ten year total period of the contract.
The CCAD is a critical facility within the U.S. Army Aviation and Missile Command (“AMCOM”) structure, providing comprehensive service support for such aircraft as the UH-60 Black Hawk, the AH-64 Apache, the CH-47 Chinook, the T700 engine (General Electric), and the T55 engine (Honeywell). KLX will be responsible for maintaining appropriate levels of bench stock consumables across the entire depot, with an initial scope of approximately 8,000 items at 20,000 bin locations. Site activation will occur over the next twelve months.
Commenting on the award, Amin J. Khoury, Chairman and Chief Executive Officer of KLX noted, “This major new award to provide comprehensive consumables logistics management services to the CCAD represents the first major new award resulting from our acquisition of Herndon Aerospace & Defense in May of 2016. This was a competitive bid process, where past performance was a significant factor in evaluating prospective bids. ASG’s team received the highest ratings in every one of the non-price evaluated factors, which contributed to securing this major new business award.” Mr. Khoury continued, “The integration of Herndon into ASG is proceeding, and we are encouraged by our team’s ability to effect the consolidation of overlapping resources while simultaneously keeping the focus squarely on both existing customers and new opportunities to grow the business. We are confident ASG’s differential value proposition, combined with Herndon’s track record with its U.S. military customers, will prove to be a powerful combination in the competition for future business with all branches of the armed forces.”
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve risks and uncertainties. The Company’s actual experience and results may differ materially from the experience and results anticipated in such statements. Factors that might cause such a difference include those discussed in the Company’s filings with the Securities and Exchange Commission (“SEC”), which include its Annual Report on Form 10-K and Current Reports on Form 8-K. For more information, see the section entitled “Forward-Looking Statements” contained in the Company’s Annual Report on Form 10-K and in other filings. The forward-looking statements included in this news release are made only as of the date of this news release and, except as required by federal securities laws and rules and regulations of the SEC, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About KLX Inc.
KLX Inc., through its two operating segments, provides mission critical products and complex logistical Solutions to support its customers’ high value assets. KLX serves its customers in demanding environments that face high cost of downtime and require dependable, high quality just-in-time customer support. The Aerospace Solutions Group is the world’s leading distributor and value added service provider of aerospace fasteners and consumables offering the broadest range of aerospace hardware and consumables and inventory management services worldwide. The Energy Services Group provides vital services and products to the oil and gas industry on an episodic, 24/7 basis. For more information, visit the KLX website at www.klx.com.
CONTACT: Michael Perlman Assistant Treasurer KLX Inc. (561) 383-5100