On February 1, 2023, VSE Corporation, one of the leading providers of aftermarket distribution and MRO (maintenance, repair, and overhaul) services for land, air and sea transportation assets for government and commercial markets, announced its Acquisition of Precision Fuel Components, LLC ("Precision Fuel"), in all cash-based transactions, this transaction will directly help VSE's Aviation segment.
Precision Fuel is a Washington-based top-market MRO service provider founded in 2001. Its services are for engine accessories and fuel systems that support the business and general aviation ("B&GA") market. The company supports small turbine rotorcraft fuel controls, sensors, governors, bleed valves, and fuel pumps alongside Bendix-Stromberg carburetors and radical engine components. Precision Fuel is a member of the AWARS (Authorized Warranty and Repair Station) network, Honeywell.
The following are the reasoning for the transaction:
• This transaction expands specialty distribution, maintenance, repair, and overhaul (MRO) in the B&GA and rotorcraft markets. VSE Aviation customers will have access to full-service, on-demand repair, differentiating, and distribution solutions.
• This acquisition will hasten customer acquisition in the B&GA market, building on recent organic wins. It will also allow effective cross-selling opportunities, positioning VSE Aviation to grow its market share within the B&GA market.
• The acquisition further establishes VSE Aviation as a preferred buyer of premium B&GA and Rotorcraft assets with proven track records of market consolidators driving scale through both inorganic and organic growth.
John Cuomo, President, and CEO at VSE Corporation, said, "We are pleased to welcome the Precision Fuel team to the VSE Aviation family. 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." He also stated, "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."
Source: Business Wire)
About VSE Corporation
Based in Alexandria, Virginia, VSE Corporation is an engineering and technical service provider of customized solutions and mission-critical platforms for its customers including government, ships, commercial vehicles, and aircraft. VSE (NASDAQ: VSEC) is registered under the ISO 9001 supply chain management professional service company. It comprises three main segments: Federal & Defense Services, Aerospace Distribution & Repair and Fleet Management Services. Its core services include MRO services, supply chain management, parts distribution, logistics, engineering support, and consulting and training services for federal, military, global commercial, and defense customers.