03-07-2023
The acquisition of Desser Holding Company LLC, a leading provider of specialty distribution and MRO services for assets used in the air, land, and sea transportation industries for commercial and government markets, has been completed, according to VSE Corporation, a leading provider of such services. The Loar Group Inc., a diversified manufacturer and supplier with a focus on aerospace and defence, purchased Desser Aerospace concurrently with the sale of Desser Aerospace’s Proprietary Solutions companies by VSE.
Agreement Terms
Subject to typical working capital adjustments, VSE paid a total cash consideration of $124 million for Desser Aerospace. Seginus Aerospace, AOG Aviation Spares, and DAC Engineered Products were among the Proprietary Solutions businesses owned by Desser Aerospace that the Company concurrently sold to Loar for a total cash consideration of $30 million. The assets VSE acquired cost a total of $94 million in net cash. In line with the transaction, the company changed its current credit facility with its lending syndicate. A $90 million Term Loan A was added as part of the amendment, and several financial covenants of the existing credit facility were revised. At closing, the Company used the proceeds from Term Loan A and a $4 million cash down payment to pay for $90 million of the purchase price with the proceeds from Term Loan A and a $4 million drawdown on its existing credit facility.
About VSE Corporation
VSE is a significant provider of aftermarket distribution and repair services for commercial and government transportation assets on land, sea, and air. Maintenance services, parts distribution, supply chain management and logistics, engineering support, and consulting and training services are among the core services provided to global commercial, federal, military, and defence customers. VSE also offers information technology and energy consulting. Visit www.vsecorp.com for more information about VSE’s services and products.
About Desser Holding Company LLC
Desser Aerospace, founded in 1920, is a prominent independent distributor of speciality aviation tyres, tubes, brakes, and batteries, as well as a component Maintenance, Repair, and Overhaul (MRO) service provider. Desser Aerospace has offices in California, Tennessee, the United Kingdom, and Australia, and serves a wide and appealing customer base in all aviation industry categories, including commercial aviation, business and general aviation, and military aftermarket customers.
About Loar Group Inc
Loar Group Inc. is a diverse manufacturer and supplier with long-standing ties with prominent aerospace and defence OEMs and Tier One clients around the world. The mission of the company is to form a strategic worldwide alliance of companies that specialise in the design and manufacture of aerospace and defence components. Loar provides creative, cost-effective engineering and production capabilities, as well as prompt, dependable service, resulting in profitable and sustainable long-term collaborations.
