Global Fastener News

STOCK REPORT: Aviall

Jason Sandefur

The Boeing Co. completed its acquisition of Aviall Inc. for $1.7 billion plus $448 million in assumed debt. Valued at $48 per share, the price represents a 27% premium for fastener distributor Aviall”s stock value of $37.70 per share.
In Boeing”s largest acquisition since the $27 billion purchase of McDonnell Douglas Corp. in the late 1990s, the aviation giant paid 16 times trailing EBITDA (operating cash flow) for Aviall. In 2005 Aviall generated net sales of $1.295 billion, gross profit of $228.5 million, and EBITDA of $129.3 million.
According to SEC filings, Aviall CEO Paul Fulchino was paid more than $26 million cash for his Aviall stock holdings.
Aviall operates as a wholly-owned subsidiary of Boeing Commercial Aviation Services (BCA). Aviall”s parts ordering and supply chain management capabilities will also be utilized by Boeing Integrated Defense Systems” Support Systems business.
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.
In 2006 overall Boeing revenue grew 19.2% to $52.64 billion, but net income declined 13.8% to $2.2 billion.

Headquarters: 2750 Regent Blvd., DFW Airport, Dallas, TX 75261-9048. Tel: 972 586-1000 Fax 972 586-1361
Web: aviall.com
CEO: Paul Fulchino, 59
Investor Relations: Colin Cohen, 54
Founded: 1981
Employees: 1009 \ �2007 FastenerNews.com