Boeing [BA] on Tuesday said it has agreed to acquire KLX Inc. [KLXI] for about $3.2 billion in cash in a deal aimed at strengthening its parts and services business, which it is intent on growing substantially over the next decade.

KLX’s product families include aerospace fasteners. Photo: KLX

The deal is mainly focused on the commercial aircraft side of Boeing’s new Global Services segment, as just about 8 percent of KLX’s $1.4 billion in sales last year was to defense customers.

KLX provides aerospace fasteners, chemicals, consumables and logistics services. In addition to providing new aviation parts, KLX also markets and distributes products for about 2,400 manufacturers.

Briefing charts provided by Boeing in conjunction with its pending acquisition show that KLX did 48 percent of sales in 2017 in the commercial space, 40 percent in the aftermarket, and 4 percent related to business jets.

Miami-based KLX will be integrated with Boeing’s Aviall business unit. KLX has about 2,000 employees

“This acquisition is the next step in our services growth strategy, with a clear opportunity to profitably grow our business and better serve our customers in a $2.6 trillion, 10-year services market,” Stand Deal, president and CEO of Boeing Global Services, said in a statement. “By combining the talent and product offerings of Aviall and KLX Inc., we will provide a one-stop-shop that will benefit our supply chain and our various customers in a meaningful way.”

The deal is expected to close in the third quarter. Once completed, Boeing will assume about $1 billion in KLX debt, bringing the enterprise value of the transaction to nearly $4.3 billion.

Completion of the deal is contingent on the successful divestment and separation of KLX’s Energy Services Group. The transaction is subject to approvals by regulators and a majority of KLX’s shareholders.

Boeing said the acquisition should be neutral to its earnings through 2019 and accretive beginning in 2020. The company expects annual cost savings growing to about $70 million by 2021.

Boeing last month said it projects its services business to generate between $15 billion and $15.5 billion in sales this year.