Wesco Aircraft Holdings Inc. announced Friday that it is being acquired by private equity firm Platinum Equity in a deal valued at $1.9 billion.
The Valencia aerospace parts and supply chain services provider will be combined with Pattonair, a Platinum Equity-owned supply chain management services company based in the United Kingdom.
Wesco Chief Executive Todd Renehan said he was excited about the opportunities a combination with Pattonair will bring to the company.
“This transaction is a strong validation of our customer value proposition, and it will allow us to find new and innovative ways to bring more value to customers, enhance relationships with suppliers and create additional opportunities for employees,” Renehan said in a statement.
The acquisition is expected to close by the end of the year. Wesco, a publicly traded company, will become privately held and shares of its common stock will not be listed on the public market.
Platinum Equity, in Beverly Hills, also owns Electro-Rent Corp., a testing and computer equipment supplier in Van Nuys.
Wesco announced the acquisition deal on the same day it reported earnings that matched Wall Street expectations and beat revenue projections for its fiscal third quarter.
The company on Friday reported adjusted net income of $22.7 million (23 cents a share) for the quarter ending June 30, up from $20.1 million (20 cents) in the same period a year earlier. Revenue increased 8 percent to $442 million.
Analysts on average expected earnings of 23 cents on revenue of $436 million, according to Thomson Financial Network.
The financial results were released before the market opened. Shares in Wesco (WAIR) closed up 75 cents, or more than 7 percent, to $11.07 on the New York Stock Exchange.