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Boeing to buy aerospace parts maker KLX for about $3.2 billion in cash

  • Plane maker Boeing is buying aerospace parts company KLX for about $3.2 billion.
  • The acquisition announcement comes a week after Boeing CEO Dennis Muilenburg said the company's growth in services could be complemented by strategic acquisitions.
  • Last year, Boeing launched a services business, which announced deals worth nearly $1 billion in February.

Plane maker Boeing said on Tuesday it would buy aerospace parts company KLX for about $3.2 billion in cash to expand its aircraft services business.

The $63-per-share offer gives KLX an enterprise value of $4.25 billion, including about $1 billion of net debt.

Boeing Chief Executive Dennis Muilenburg said last week its services growth would be complemented by strategic acquisitions.

The plane maker said there will be no change to its 2018 guidance or capital deployment strategy and expects annual cost savings of about $70 million by 2021.

Last year, Boeing launched a services business, which announced deals worth nearly $1 billion in February, as it looks to capture more of the higher-margin services and spare-parts revenue after a plane is sold.

The Wall Street Journal reported the news on Friday.