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VSE Corporation Launches Aviation Landing Gear Initiative with $100 Million Exclusive Distribution Agreement
ALEXANDRIA, Va.--(BUSINESS WIRE)-- VSE Corporation (NASDAQ: VSEC), a leading provider of distribution and maintenance, repair and overhaul (MRO) services for
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[{"type":"text","content":" ALEXANDRIA, Va.--(BUSINESS WIRE)--\nVSE Corporation (NASDAQ: VSEC), a leading provider of distribution and maintenance, repair and overhaul (MRO) services for land, sea and air transportation assets in the public and private sectors, today announced that it has entered into a five-year exclusive distribution agreement with a leading global manufacturer of hydraulic landing gear components and electromechanical parts, and launched an Aviation Landing Gear initiative as a part of its 2021 growth strategy.\n\nThe agreement, which is scheduled to commence in January 2021, has a total estimated value of approximately $100 million over five years, subject to certain conditions. Under the terms of the agreement, VSE will be the exclusive distributor for more than 150 line-replaceable units and 1,600 landing gear accessories supporting current, in-production Boeing and Airbus platforms. VSE will provide support to global commercial airline and MRO customers through distribution centers in the Americas, Europe and Asia.\n\nThis agreement enhances VSE’s existing presence in the hydraulic landing gear components market. VSE believes the landing gear vertical is an attractive space given the mission-critical, high-value nature of the parts and components being supplied, and VSE’s unique ability to offer bundled solutions comprising product distribution and repair capabilities.\n\nUnder VSE’s new, multi-year Landing Gear initiative, the Company intends to develop a comprehensive landing gear suite of solutions for global airline and MRO customers. This suite will include services such as gear sales, exchanges and repair management as well as the distribution of proprietary and specialty products, kitting and other just-in-time value added services, including 24/7 AOG service. VSE believes that this solution suite will be an industry-first; one that simplifies the supply chain process and reduces working capital requirements for customers.\n\n“Following a competitive RFP process, VSE was selected as the exclusive distributor of hydraulic landing gear components by a leading global manufacturer, supporting our entrance into a promising market vertical,” stated John Cuomo, President and CEO of VSE Corporation. “The unique combination of our independent, OEM-centric supply model, technical expertise, success in the landing gear market, and abil...