April 27, 2018 / 5:36 PM / a year ago

Boeing nears deal to buy aerospace parts company KLX: WSJ

The Boeing logo is seen at their headquarters in Chicago, in this April 24, 2013 file photo. REUTERS/Jim Young/File Photo

(Reuters) - Boeing Co (BA.N) is nearing a deal to buy aerospace parts company KLX Inc KLXI.O to expand into the aircraft-services business, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The companies are expected to announce a deal on Monday, though the plans could be derailed, the report said, adding that the terms and structure of the deal could not be determined. t.co/NyQTIDPhSU

KLX’s shares jumped about 8 percent to $78.98 while Boeing’s shares were flat at around $341.74. KLX was not immediately available for comment, while Boeing declined to comment.

KLX said in December it was exploring strategic options, including sale of its divisions or the whole company.

Boeing Chief Executive Officer Dennis Muilenburg said on Wednesday its services growth would be complemented by strategic acquisitions.

Last year, Boeing launched a services business as it looks to capture more of the higher-margin services and spare-parts revenue after a plane is sold.

The plane maker’s global services revenue rose 8 percent to $3.94 billion in the first-quarter, pointing to growth in commercial services.

The company expects to generate $50 billion a year in revenue within the next five to 10 years from the services unit that had annual revenue of $14.6 billion in 2017.

Reporting By Aparajita Saxena and Arunima Banerjee in Bengaluru; Editing by Arun Koyyur

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