VSE Acquires Global Parts Group For $38M

VSE Corporation VSEC acquired privately held Global Parts Group, Inc, a fully integrated aftermarket distribution and MRO services provider supporting the global business and general aviation (B&GA) market, in an all-cash transaction valued at ~$38 million.
Global Parts generated ~$65 million in total revenue in 2020. The transaction is immediately accretive to VSE’s Aviation segment.
This acquisition will provide access to a more comprehensive on-demand repair and distribution solution unique to the market for business jet customers.
VSE will have access to Global Parts’ more than 3,000 small- and medium-sized business jet customers, representing more than 100 platforms. The transaction positions VSE as a well-capitalized market consolidator focused on achieving scale efficiencies through organic and inorganic growth.
“Global Parts’ customer service-focused culture, long-term customer relationships, OEM supplier partnerships, consistent financial performance, and proven technical expertise are highly complementary to our existing business, providing the opportunity for both revenue and margin enhancement opportunities over a multi-year period,” commented John Cuomo, President, and CEO of VSE Corporation.
VSE had $347 thousand in cash and cash equivalents as of March 31, 2021.
Price action: VSEC shares are trading higher by 0.25% at $52.00 on the last check Monday