Boeing is nearing a deal to buy aerospace parts company KLX 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.
KLX’s shares jumped about 8 percent to $78.98 while Boeing’s shares were flat at around $341.74.
Both KLX and Boeing were not immediately available for a comment.
KLX said in December it was exploring strategic options, including sale of its divisions or the whole company.
Boeing’s chief executive officer 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 company hopes 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.
