• The Aviation Group will focus on higher growth component and accessory repair and part distribution.
• The divestment is expected to be completed till March 2020, subject to legal conditions.

In what appears to be an all-cash deal, VSE Corporation is set for a divestment as they intend to sell Prime Turbines subsidiary to PTB Holdings for $21 million. Reportedly, VSE Corporation’s Aviation Group will cease to provide turboprop engine repair, overhaul services, maintenance, along with management reallocating resources toward the company’s higher-growth accessory/component repair and part distribution business.

Apparently, the proceeds may be used to minimize debt by the technical services company and to reinvest in the aviation business. President and CEO of VSE Corporation John Cuomo emphasized that PTB is a reputed leader in the engine refurbishment business and they are fully committed to comply with CRM by providing highest level of service to its customers. The CEO further added that Prime Turbines was apt for PTB owing to its expertise in turboprop servicing and turboshaft engine platforms.

Discussing the divestment, he went on to state how the agreement will help them work more collaboratively with other OEMs. He was quoted saying that Aviation Group will focus on higher growth component and accessory repair and part distribution, thereby helping them expand their presence within the global commercial and general aviation markets.

For the record, Jones Day was positioned as the legal advisor to VSE Corporation pertaining to the deal. According to sources, the divestment is expected to be completed till March 2020, subject to customary closing approvals, regulatory approvals and other legal conditions.

Prime Turbines has approximately 60 employees with main operations in Arizona and Texas. Reportedly, for 2019, the business made contribution of around 4% of the projected revenue of VSE Corporation.

Source credit:

https://www.business-news-today.com/vse-corporation-to-sell-prime-turbines-to-ptb-for-21m/