Kellstrom buys parts resale business from Aviation Sales Company

Kellstrom Industries (Sunrise, FL) will acquire the aircraft and engine parts resale business of Aviation Sales Company (AVS; Miramar, FL) in a complicated series of agreements that also include a 50/50 joint venture company and long-term support and marketing arrangements. Kellstrom expects to consolidate the parts resale business with its Solair and Commercial Engine Divisions.

Kellstrom specializes in providing engines and parts for large turbofan engines manufactured by CFMI, General Electric, Pratt & Whitney, and Rolls Royce, in addition to aircraft components. The company also provides inventory management and components for engines and parts for large military transport aircraft, jet fighters, and helicopters.

AVS provides aviation maintenance and inventory services including heavy aircraft maintenance, component repair and overhaul, leasing, spare parts distribution, and component manufacture.

The deal also includes

• an agreement that AVS will exit the parts resale business and focus on the expansion of its maintenance repair and overhaul (MRO) operations. For its part, Kellstrom has agreed to a long-term supply arrangement, delivering parts, and providing inventory management services to AVS's MRO operations.
  
• employees and management involved in AVS parts resale business will be employed Kellstrom;
  
• Kellstrom will lease a new 545,000-sq-ft AVS facility in Miramar, FL, where it will relocate and consolidate its Commercial Engine and Solair divisions, and will purchase AVS's parts distribution facility in Pearland, TX.

Edited by David Robb
Managing Editor, AerospaceOnline.com