VSE Corp VSEC closed the acquisition of Desser Holding Company LLC and concurrently sold Desser Aerospace's Proprietary Solutions businesses for a net cash consideration of $94 million.
In particular, VSE bought Desser Aerospace for $124 million, and in a separate transaction, it sold Desser Aerospace's Proprietary Solutions businesses (including Seginus Aerospace, AOG Aviation Spares, and DAC Engineered Products) to Loar Group Inc for $30 million.
Post the deal closure, VSEC funded $90 million of the purchase price with the proceeds from Term Loan A and $4 million from its existing credit facility.
"We are excited to officially welcome the talented Desser Aerospace team to our VSE Aviation business. The acquisition marks an important step on our path to increase the company's exposure to the high-growth, higher-margin aviation distribution and MRO markets. By combining Desser Aerospace's distribution and repair capabilities with VSE Aviation's aftermarket business, we have broadened our product and service portfolio and created a platform for geographic expansion into international markets," said John Cuomo, President, and CEO.
As of March 31, 2023, VSEC had $93 million in cash and unused commitment availability under its $350 million revolving credit facility maturing in 2025.
Price Action: VSEC shares are trading lower by 1.83% at $53.69 on the last check Monday.
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