Boeing has signed a definitive agreement to purchase aerospace parts and services supplier KLX in a $4.25bn all-cash transaction to grow its services business.

Under the agreement, Boeing will pay $63 for every KLX share.

The deal also includes KLX’s Aerospace Solutions Group and is subject to the successful divestment and separation of KLX’s Energy Services Group.

Scheduled to be completed by the third quarter of this year, the deal is also subject to customary conditions, including regulatory clearance and approval by a majority of KLX shareholders.

“Boeing expects to have a neutral earnings impact throughout the next year, with annual cost savings then growing to nearly $70m by 2021.”

Once completed, KLX will be part of Boeing Global Services and will be fully integrated with Boeing’s Aviall parts, equipment and services unit.

Boeing Global Services president and CEO Stan Deal said: “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 $2.6tn, ten-year services market.

“By combining the talent and product offerings of Aviall and KLX, we will provide a one-stop-shop that will benefit our supply chain and our various customers in a meaningful way.”

Boeing expects to have a neutral earnings impact throughout the next year, with annual cost savings subsequently growing to nearly $70m by 2021.

KLX chairman and CEO Amin Khoury said: “The combination of Aviall and KLX Aerospace facilitates the broadest scope of parts and products to support all customer fleet types for the commercial, military and defence, business, and general aviation markets.

“This business combination will enable us to deliver industry-leading value-added service solutions for our customers, and outstanding growth opportunities for our suppliers.”

KLX’s Aerospace Solutions Group is based in Miami, US, and currently employs more than 2,000 people.