BUSINESS: VSE Aviation Announces $125 Million Business & General Aviation Accessories Distribution Agreement Extension

dWeb.News Article from Daniel Webster dWeb.News

dWeb.News Article from Daniel Webster dWeb.News

Daniel Webster, dWeb.News Publisher

ALEXANDRIA, Va.–(BUSINESS WIRE)–VSE Corporation (NASDAQ: VSEC), a leading provider of distribution and maintenance, repair and overhaul (MRO) services for land, sea and air transportation assets in the public and private sectors, today announced that it has entered into a 5-year extension to an existing distribution agreement (the “Agreement”) valued at approximately $125 million with a global aircraft engine manufacturer (“OEM”).

Under the terms of the Agreement, VSE Aviation will remain the worldwide exclusive distributor of new fuel control systems and associated spare parts to the business and general aviation as well as rotorcraft markets for a leading global OEM. VSE expects to support more than 15,000 aircraft currently in operation worldwide with on-demand, flight-critical components on a 24/7 basis to support scheduled engine overhaul activity, line maintenance and AOG (aircraft on-ground) events. Japan-based customers are not included in the agreement.

The Agreement and partnership, which was initially scheduled to terminate in 2024, has been extended through 2029. VSE expects that total working capital investments in the extended Agreement will decline relative to historical levels. This will have no impact on current customer support levels. The Agreement’s annual revenue contributions are expected to be similar to the previous-year period.

John Cuomo is the President and CEO at VSE Corporation. He stated that this contract extension strengthens our long-standing relationship with a trusted global OEM partner. One who values our technical expertise and services capabilities, as well as our experience managing complex global distribution programmes. “We are happy to continue supporting this OEM and look forward leveraging our unique value proposition to our growing global base BG&A customers.” Ben Thomas, VSE Aviation President, stated that “We are delighted by the opportunity to support this OEM” and “This contract extension further solidifies our successful, long-term relationship with a valued global OEM partner.” “The continuation of this important, decades long OEM relationship serves to strengthen our core business, while further positioning us to become the leading integrated supplier of flight-critical systems and MRO services to the global business and general aviation market.”

ABOUT VSE CORPORATION

VSE is a leading provider of aftermarket distribution and repair services for land, sea and air transportation assets for government and commercial markets. VSE provides core services such as maintenance, repair, overhaul (MRO), parts distribution, supply chain management, logistics support, consulting, and training services to global commercial, federal and military customers. VSE also offers information technology and energy consulting services. For additional information regarding VSE’s services and products, visit us at www.vsecorp.com.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause VSE’s actual results to vary materially from those indicated or anticipated by such statements. There are many factors that could cause VSE’s actual results and performance not to match those of the future, including the risks described in the reports we have filed or expect to file with the SEC. Forward-looking statements or statements of belief are made only as of this press release. Forward-looking statements are not subject to revision or updating to reflect changes in assumptions, unanticipated events, or changes in future operating results.

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