Global Fastener News

Boeing Completes $1.7b Acquisition of Aviall

Jason Sandefur

The Boeing Co. completed its acquisition of Aviall Inc. for $1.7 billion plus $448 million in assumed debt.
The deal, first announced in April 2006, lets Aviall keep its name and operate as a wholly-owned subsidiary of Boeing Commercial Aviation Services. Aviall”s parts ordering and supply chain management capabilities will also be utilized by Boeing”s Integrated Defense Systems” Support Systems business.
Valued at $48 per share, the price represents a 27% premium for fastener distributor Aviall’s stock value of $37.70 per share the day before the April announcement.
“Boeing is paying an extremely high price for Aviall,” fastener acquisition specialist Richard Hagan of NY-based Pinnacle Capital Corp. noted when the deal surfaced in April.
In 2005 Aviall generated net sales of $1.295 billion, gross profit of $228.5 million, EBITDA of $129.3 million and EBIT of $106.0 million.
“This means Boeing is paying 16 times trailing EBITDA (operating cash flow), 19.5 times trailing EBIT and 1.6 times trailing net sales,” Hagan told FastenerNews.com. “The recent high range price for large publicly held companies is 7 to 9 times EDITDA.”
According to SEC filings, Aviall CEO Paul Fulchino was paid more than $26 million cash for his Aviall stock holdings.
Headquartered in Dallas, Aviall distributes aerospace parts, including fasteners, to more than 19,000 government/military, general aviation/corporate and commercial airline customers, including over 300 airlines. Aviall markets and distributes products for approximately 220 manufacturers and offers approximately 700,000 catalog items. The company had 1,009 employees as of Dec. 31, 2005.
Aviall’s 2005 revenue grew 30% to $1.3 billion, with more than 25% growth expected in 2006. Web: aviall.com �2006 FastenerNews.com