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VSE Strikes $120M Deal for Turbine Controls in Series of Strategic Actions; John Cuomo Quoted

Alexandria, Virginia-based aftermarket services provider VSE (Nasdaq: VSEC) has agreed to acquire Turbine Controls Inc. for approximately $120 million as part of efforts to expand its original equipment manufacturer authorized repair capabilities and presence in the aviation maintenance, repair and overhaul services market.

TCI’s “diverse repair capabilities across engine components and airframe accessories, serving commercial, military, and business and general aviation markets, will allow us to broaden our OEM Authorized MRO capabilities, expand into new markets, and serve new customers,” John Cuomo, president and CEO of VSE, said in a statement published Thursday.

VSE announced that it completed the sale of its federal and defense segment’s operating assets to two buyers for approximately $44 million in cash and expects transition work to conclude by the second quarter of 2024.

The company noted that it will stop using its non-core FDS facility as a result of the transaction and move its corporate headquarters later in the year.

In May 2023, VSE agreed to divest its federal and defense segment to private equity firm Bernhard Capital Partners. Both parties decided to drop the deal in September after they failed to get the necessary approvals and meet other closing conditions in a timely manner.

VSE also kicked off a process to explore and assess strategic alternatives for its fleet segment to improve shareholder value. The company tapped Jefferies as its financial adviser in the strategic process.

Cuomo stated that the strategic actions seek to reaffirm its commitment to simplifying its business and go-to-market strategy as it works to strengthen its position as an aviation aftermarket distribution and repair services provider.

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