VSE Corporations, an engineering and technical support services company, revealed on Tuesday an agreement to purchase Wheeler Bros., Inc. (WBI). WBI is a chain management company headquartered in Somerset, PA that supplies vehicle parts to the U.S. Postal Service and the Department of Defense.
The purchase price of the company totaled to $180 million in cash, and a possible increase of $40 million. The deal to buy-out the private company of 185 employees will close in late May or early June. Before finalizing the agreement VSE Corporation must go under customary closing conditions, such as the Hart-Scott-Rodino Act and completion of bank acquisition financing. The agreement also encloses that WBI will add supply chain management to prolong the use of military ships, aircraft, vehicles to their installed systems.
Both parties are excited about the merge and the success the companies will bring together. VSE’s CEO and President, Maurice (“Mo”) Gauthier said, “We see significant opportunities for leveraging WBI’s supply chain capabilities with VSE’s 52-year history of supporting the Department of Defense in extending the service lives of legacy ships, vehicles, aircraft and their systems.”