Vertex Aerospace last Friday said it has agreed to acquire several business lines from Raytheon Technologies Corp. [RTX] involved in defense and commercial training, sustainment and mission solutions that have a combined $1 billion in sales.
Terms of the deal, which is subject to regulatory approvals, were not disclosed. Jefferies aerospace and defense analyst Sheila Kahyaoglu estimates the sale price to be about $1 billion and expects RTC to use the proceeds to repurchase its stock.
Vertex provides aerospace and defense maintenance and logistics services for U.S. and international military and government agencies. Vertex has about 3,500 employees and is a portfolio company of the private equity firm American Industrial Partners.
RTC’s Defense Training and Mission Critical Solutions has more than 2,000 employees and includes four segments, Defense Training Solutions, Commercial Training Solutions, Mission Critical Solutions, and Modernization & Sustainment. The business lines are part of the Raytheon Intelligence & Space segment.
Vertex, which is based in Mississippi, said the acquisition will add scale and diversify its service and product offerings for defense, government and commercial customers in the U.S. and globally.
“This important acquisition significantly enhances our capabilities for new and existing customers and accelerates our strategy to deliver a more comprehensive suite of solutions to our customers globally,” Ed Boyington, president and CEO of Vertex, said in a statement.
Vertex and AIP’s financial advisers on the deal are RBC Capital Markets and Morgan Stanley and Evercore is advising RTC.