M&A - VSE CORP

Form Type: 10-Q

Filing Date: 2025-05-07

Corporate Action: Acquisition

Type: Update

Accession Number: 000010275225000049

Filing Summary: VSE Corporation reported its financial performance for the quarter ending March 31, 2025, revealing substantial revenue growth and notable losses in discontinued operations. The company generated total revenues of $256,045,000, significantly up from $162,383,000 a year earlier, driven by increases in both product sales and service revenues. Operating income for the quarter was $24,504,000, overshadowed by a net loss of $8,973,000, primarily due to losses from discontinued operations amounting to $22,941,000. VSE completed the acquisition of Turbine Controls, Inc. for $122.4 million and Kellstrom Aerospace for approximately $188.9 million, enhancing its operational capabilities in the aviation aftermarket. The results include assets and operations related to these acquisitions, and quarterly operating results for the Federal and Defense and Fleet segments are classified as discontinued operations, reflecting a strategic shift in the company's business focus. The management highlighted risks and uncertainties regarding future financial performance in light of these acquisitions and ongoing market risks.

Form Type: 8-K

Filing Date: 2025-05-02

Corporate Action: Acquisition

Type: New

Accession Number: 000010275225000041

Filing Summary: On May 1, 2025, VSE Corporation announced the acquisition of Turbine Weld Industries, LLC, a specialized Maintenance, Repair, and Overhaul service provider focused on complex engine components for business and general aviation platforms. This acquisition is expected to strengthen VSE’s capabilities in providing comprehensive services to its clients in the aviation industry. Additionally, on May 2, 2025, VSE entered into a new five-year senior secured credit agreement to finance various corporate needs, including the acquisition. This agreement includes a $300 million senior secured term loan and a $400 million revolving credit facility, aimed at enhancing VSE's financial flexibility and operational strength.