CHICAGO, IL – XLS Partners, Inc., an independent investment banking firm providing M&A advisory, capital raising, and debt advisory services, is pleased to announce that its client, 1st Choice Aerospace, Inc. has been acquired by VSE Aviation, Inc., a subsidiary of VSE Corporation (NASDAQ: VSEC).
1st Choice provides MRO services, including pneumatics, fuel, electro-mechanical, electrical accessories, crew seats, interiors, lavatory systems, oxygen systems, cargo systems, and containers. 1st Choice is a Federal Aviation Administration and European Aviation Safety Agency Part 145 certified component repair station with locations in Florida and Kentucky. 1st Choice customers include commercial and cargo airline operators, end users, integrators that manage airline repairs, Original Equipment Manufacturers, suppliers, and other MRO providers.
The initial purchase price paid at closing was $112 million in cash. The purchase agreement also includes potential post-closing payments of up to $40 million if 1st Choice surpasses certain thresholds of gross profit (as defined in the purchase agreement) during 2019 and 2020. VSE Aviation has retained the senior management team through employment contracts to continue management of 1st Choice operations and its approximately 200 employees.
“Joe Contaldo and the team of professionals at XLS were essential to our successful transaction,” said Mario Catalano, a senior officer and shareholder of 1st Choice. “They are the perfect blend of experience and size, while still maintaining customer focus. With their guidance and expertise, we found the perfect partner for our business.”
Established in 2015 by VSE Corporation, VSE Aviation is a family of companies that includes Air Parts & Supply Co., CT Aerospace LLC, Kansas Aviation LLC, Prime Turbines LLC, VSE Aviation GmbH, and VSE Aviation Singapore PTE LTD that specialize in MRO services and parts supply for commercial, corporate and regional aircraft.
VSE Corporation (NASDAQ: VSEC) is a diversified products and services company providing logistics solutions with integrity, agility, and value. VSE is dedicated to making its 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.
XLS Partners acted as the exclusive advisor to 1st Choice Aerospace and the transaction was led by Joe Contaldo, Partner. The transaction was completed on January 10, 2019.
About XLS Partners
XLS Partners, Inc. is an independent investment banking firm that provides M&A advisory, capital raising and debt advisory for select clients globally. Middle market companies and private equity funds rely on our creative solutions, thoughtful insight and truthful advice when considering exiting their companies, making strategic acquisitions, partnering with private equity sponsors and raising debt or equity capital.