Wesco Makes $550 Million AcquisitionFriday, January 31, 2014
Wesco Aircraft Holdings Inc. has acquired a supply chain management firm serving the aerospace industry in a deal valued at $550 million.
The Valencia-based aerospace supplier adds 1,300 employees and 35 distribution hubs worldwide with its acquisition of Haas Group Inc. Wesco is financing the purchase of the West Chester, Pa. company with a new $525 million loan, existing credit and cash.
Chairman and Chief Executive Randy Snyder said the capabilities and scope of Haas’s global business make it a good fit for Wesco.
“We believe that the acquisition of Haas will provide significant opportunities for Wesco to continue growing at above-market rates,” said Snyder, in a prepared statement.
Wesco has completed a series of acquisition since it was taken public by Carlyle Group in a July 2011 IPO that raised $315 million. The Washington D.C. private equity firm bought a majority stake in Wesco in 2006 when it was privately held.
Since then, Carlyle has reduced its stake to less than a third of outstanding shares but remains the largest single shareholder.
Wesco also released preliminary fiscal first quarter earnings estimates. It expects diluted earnings per share of 24 cents to 26 cents on revenue of $223 to $227 million, with both figures higher than the same period a year earlier.
Wesco shares fell 31 cents, 1.37 percent, to close at $19.45 on the New York Stock Exchange.