VSE Aviation, Inc., a subsidiary of VSE Corporation (NASDAQ: VSEC), announced on February 2, 2021 that it has entered into an exclusive, five-year distribution agreement with Triumph Systems & Support as part of its new Aviation Landing Gear initiative.
The agreement, which took effect in January, has a total estimated value of approximately $100 million over five years. Under the terms of the agreement, VSE will be the exclusive distributor for more than 150 line-replaceable units and 1,600 landing gear accessories supporting current, in-production Boeing and Airbus platforms. VSE will provide support to global commercial airline and MRO customers through distribution centers in the Americas, Europe and Asia.
This agreement enhances VSE’s existing presence in the hydraulic landing gear components market. VSE believes the landing gear vertical is an attractive space given the mission-critical, high-value nature of the parts and components being supplied, and VSE’s unique ability to offer bundled solutions comprising product distribution and repair capabilities.
Under VSE’s new, multi-year Landing Gear initiative, the Company is developing a comprehensive landing gear suite of solutions for global airline and MRO customers. This suite will include services such as gear sales, exchanges and repair management as well as the distribution of proprietary and specialty products, kitting and other just-in-time value added services, including 24/7 AOG service. VSE believes that this solution suite will be an industry-first; one that simplifies the supply chain process and reduces working capital requirements for customers.