Boeing on Monday reached agreement to acquire Dallas, Texas-based Aviall, for $48 per share or a total of $1.7 billion, plus the assumption of approximately $350 million of debt. Aviall (Booth No. 433) claims to be the largest independent provider of new aviation parts and services in the aerospace industry, with sales of $1.3 billion in 2005.

With this move, Boeing expects to strengthen its position in the $25 billion market of new aviation parts and services. Boeing chairman and CEO James McNerney said the acquisition would allow Boeing to offer improved services to both civil and military customers.

Aviall has approximately 1,000 employees at Dallas and other customer service centers located in North America, Europe and Asia. The company markets and distributes products for about 220 manufacturers and offers some 700,000 catalog items. Its activities also include the supply of aviation batteries, hoses, wheels and brakes, as well as paint services.

After completion of the acquisition, Aviall will be operated as a wholly owned subsidiary reporting to Boeing’s Commercial Aviation Services Division. Aviall’s parts ordering and supply chain management capabilities will be utilized for both Boeing’s Integrated Materials Management program serving the airline industry, and the manufacturer’s Integrated Defense Support program, both aimed at minimizing customers’ maintenance inventories.

The acquisition process is expected to close by the end of the third quarter, subject to government approval.