We are pleased to announce that VSE Corporation (NASDAQ: VSEC) has acquired Precision Fuel Components, LLC (“Precision Fuel”), effective February 1, 2023, in an all-cash transaction. This transaction is immediately accretive to VSE’s Aviation segment.
Founded in 2001, Washington-based Precision Fuel is a market-leading provider of MRO services for engine accessories and fuel systems supporting the business and general aviation (“B&GA”) market. Precision Fuel specializes in supporting small turbine rotorcraft fuel controls, governors, sensors, bleed valves, and fuel pumps, along with radial engine components and Bendix-Stromberg carburetors. Precision Fuel is a member of the Honeywell Authorized Warranty and Repair Station (AWARS) network.
TRANSACTION RATIONALE
- Expands specialty distribution and MRO capabilities in B&GA and Rotorcraft market. By combining VSE Aviation’s existing part distribution and MRO services with Precision Fuel’s engine accessory and fuel system MRO services, VSE Aviation customers will have access to differentiating, full-service, on-demand repair and distribution solutions.
- Accelerates customer acquisition within B&GA market, building upon recent organic wins. This transaction provides VSE Aviation access to new rotorcraft and fixed wing operator customers and expands VSE’s MRO capabilities within new engine platforms. This acquisition will allow for significant cross-selling opportunities, positioning VSE Aviation to expand its market share within niche, B&GA market adjacencies.
- Further highlights VSE Aviation as an acquiror of choice for high-quality, growing B&GA and Rotorcraft assets with established brands. Given the fragmented nature of the B&GA services industry, this transaction further positions VSE Aviation as a well-capitalized market consolidator focused on driving scale through both organic and inorganic growth.
MANAGEMENT COMMENTARY
“We are pleased to welcome the Precision Fuel team to the VSE Aviation family,” stated John Cuomo, President and CEO of VSE Corporation. “This transaction represents an important strategic investment for our Aviation segment, one that expands our repair capabilities across a diverse base of global rotorcraft, fixed wing, and B&GA customers. Precision Fuel’s value-added,
high-margin MRO solutions will complement our existing service capabilities, while positioning us to further enhance our unique value proposition.”
“Precision Fuel’s customer-centric culture, long-term relationships, established OEM partnerships, and proven technical expertise are highly complementary to our existing business,” stated Ben Thomas, President of VSE Aviation. “We look forward to leveraging our expanded suite of solutions across our combined base of customers, while continuing to provide industry-leading, on-demand products and services throughout our growing global footprint.”
View the official press release here.