US-based technical services company VSE has completed its acquisition of Killick Aerospace’s four business units.

The transaction includes Killick’s Prime Turbines, CT Aerospace, Kansas Aviation of Independence and Air Parts & Supply.

The companies are engaged in maintenance, repair and overhaul services, as well as supply components for corporate and regional aircraft engines and engine accessories.

For the year ending 31 December 2014, the business units reported combined sales of $111m and income before taxes of $22m.

"With this acquisition, VSE will be able to enhance its supply chain management and MRO capabilities to serve commercial aviation markets."

With this acquisition, VSE will be able to enhance its supply chain management and MRO capabilities to serve commercial aviation markets.

VSE plans to operate the acquired businesses as part of its recently formed subsidiary VSE Aviation. The company paid approximately $189m in cash for the transaction.

VSE and Killick Aerospace signed the deal for the transaction on 31 December 2014.

Under the deal, VSE will make post-closing payments of $40m if CT Aerospace, Kansas Aviation of Independence and Air Parts & Supply reach certain thresholds of earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the first two years, and an additional $5m if the companies reach a certain EBITDA threshold during the 12-month period of 2014-2015.

To finance the acquisition, VSE approached its bank group to extend its loan agreement for five years and commitment to $300m.

Citizens Bank and Wells Fargo Securities provided financial advisory services to VSE and Killick Aerospace respectively on the transaction.