Economics

Boeing Extends Bet on Parts, Services in $3.25 Billion KLX Deal

  • Purchase furthers CEO’s goal to build a $50 billion division
  • KLX founder Amin Khoury to run new spinoff of oil and gas unit
Photographer: David Ryder/Bloomberg
Lock
This article is for subscribers only.

Boeing Co. is boosting its bet on a new services division with Chief Executive Officer Dennis Muilenburg’s biggest deal yet.

The world’s largest planemaker will buy aerospace parts distributor KLX Inc. for $3.25 billion while also taking on about $1 billion of net debt. The deal is contingent on the separation of KLX’s energy business, which the company plans to spin off to shareholders.