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MIRAMAR, Fla. - VSE Corporation (NASDAQ:VSEC), whose stock has delivered an impressive 52.79% return over the past year according to InvestingPro, has priced its previously announced underwritten public offering of 2,352,941 shares of common stock at $170.00 per share, the aviation aftermarket services provider announced Monday.
The company has granted underwriters a 30-day option to purchase up to an additional 352,941 shares. The offering is expected to close Tuesday, subject to customary closing conditions.
VSE anticipates net proceeds of approximately $384.0 million after deducting underwriting discounts and commissions but before estimated offering expenses. The company, which maintains a healthy financial position with a current ratio of 3.73 and moderate debt levels, plans to use the proceeds to fund all or part of the cash consideration for its previously announced acquisition of GenNx/AeroRepair IntermediateCo Inc. (Aero 3), support potential future strategic acquisitions, and for general corporate purposes.
Jefferies and Morgan Stanley are acting as joint lead book-running managers for the offering, with RBC Capital Markets and William Blair serving as joint book-runners. Truist Securities, B. Riley Securities and Stifel are additional book-runners, while KeyBanc Capital Markets, Benchmark, and Jones are co-managers.
VSE, headquartered in Miramar, Florida, provides aviation distribution and repair services for commercial and business and general aviation aftermarkets. The company focuses on enhancing the productivity and longevity of high-value assets for its customers.
The offering is being made pursuant to an automatically effective shelf registration statement filed with the Securities and Exchange Commission, according to the press release statement.
In other recent news, VSE Corporation reported third-quarter earnings that exceeded analyst expectations. The company achieved adjusted earnings of $0.99 per share, surpassing the consensus estimate of $0.84. Additionally, VSE’s revenue reached $282.9 million, which also exceeded projections of $276.67 million and marked a 38.9% increase compared to the same period last year. Despite these positive financial results, VSE Corporation announced plans to acquire Aero 3 for $350 million. To fund this acquisition, the company plans to launch a public stock offering. These developments have drawn significant attention from investors and analysts.
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