VSE Corporation Announces Agreement to Divest Prime Turbines Subsidiary for $21M
31 January 2020 - 10:15AM
Business Wire
Aviation Group to Focus on Component/Accessory
Repair and Parts Distribution
VSE Corporation (NASDAQ: VSEC) a leading provider of
distribution and repair services for land, sea and air
transportation assets in the public and private sectors, today
announced that it has entered into a definitive agreement to sell
its subsidiary Prime Turbines, LLC to PTB Holdings USA, LLC for $21
million in cash, subject to customary adjustments. The transaction
is expected to close during the first quarter 2020.
With this divestiture, VSE’s Aviation Group will no longer offer
turboprop engine repair, maintenance, and overhaul services, as
management reallocates resources toward the Company’s higher-growth
component/accessory repair and parts distribution businesses. Prime
Turbines has approximately 60 employees with primary operations in
Texas and Arizona and comprises approximately 4% of VSE’s estimated
revenue for 2019.
“PTB is a respected leader in the engine refurbishment business
and is committed to providing its customers the highest level of
service,” stated John Cuomo, President and CEO of VSE Corporation.
“Prime Turbines is a good strategic fit for PTB, given its deep
expertise servicing turboprop and turboshaft engine platforms.”
“Moving forward, our Aviation Group will concentrate on higher
growth component and accessory repair and parts distribution,
positioning us to work more collaboratively with major OEMs, while
further expanding our presence within the global commercial and
general aviation markets,” Mr. Cuomo added. “The proceeds from this
sale will be used to pay down debt and reinvest in our aviation
business growth efforts.”
The completion of the transaction is subject to the satisfaction
or waiver of various conditions, including regulatory approval and
the receipt of other customary closing approvals.
Jones Day served as legal advisor to VSE Corporation in
connection with this transaction.
About VSE Corporation
Established in 1959, VSE is a diversified products and services
company providing logistics solutions. VSE is dedicated to making
our federal and commercial clients successful by delivering
innovative solutions for vehicle, ship, and aircraft sustainment,
supply chain management, platform modernization, mission
enhancement, and program management, and providing energy, IT, and
consulting services. For additional information regarding VSE’s
services and products, visit us at www.vsecorp.com
Safe Harbor
This release contains statements that, to the extent they are
not recitations of historical fact, constitute “forward-looking
statements” under federal securities laws, and are based on VSE’s
current expectation and assumptions. The words “believe,”
“estimate,” “anticipate,” and other similar expressions are
intended to identify forward-looking statements. All such
statements are subject to the safe harbor protection provided by
applicable securities laws. These statements are not guarantees of
future performance and are subject to risks and uncertainties. For
discussions identifying some important factors that could cause
actual VSE results to differ materially from those anticipated in
the forward-looking statements in this news release, see VSE’s
public filings with the SEC.
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Investor Contact Christine Kaineg Director, Investor
Relations (703) 329-3263
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