VSE Corporation to sell Prime Turbines to PTB for $21m
VSE Corporation, a provider of distribution and repair services for land, sea, and air transportation assets, has agreed to sell its subsidiary Prime Turbines to PTB Holdings USA for $21 million in an all-cash deal.
With the transaction, VSE Corporation said that its Aviation Group will stop offering turboprop engine repair, maintenance, and overhaul services, with management reallocating resources towards the higher-growth component/accessory repair and parts distribution businesses of the company.
The proceeds from the transaction will be used by the technical services company to reduce its debt and also for reinvesting in its aviation business.
Prime Turbines has nearly 60 employees with main operations in Texas and Arizona. The business contributed nearly 4% of the estimated revenue of VSE Corporation for 2019.
John Cuomo – President and CEO of VSE Corporation said: “PTB is a respected leader in the engine refurbishment business and is committed to providing its customers the highest level of service.
“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.”
Jones Day was the legal advisor to VSE Corporation in connection with the deal.
The sale is likely to be wrapped up during Q1 2020 subject to receipt of regulatory approval, customary closing approvals, and other conditions.