VSE Corporation has entered into an asset purchase and perpetual licence agreement with Honeywell to exclusively manufacture and support certain fuel control systems on four key engine platforms through its VSE Aviation business; three in-production engine platforms manufactured by Rolls Royce and Pratt & Whitney Canada, including P&WC PT-6 engine variants. These systems and subcomponents will support more than 20,000 in-service aircraft powered by these engines, spanning over 120 platforms in the business and general aviation and rotorcraft markets.

This expands VSE Aviation's existing capabilities supporting Honeywell's fuel control systems and associated subcomponents. Since 2015, the company has served as the exclusive distributor of these products and it has a long-established and successful history as an MRO provider to support them. This agreement makes VSE the licensed manufacturer with perpetual rights to the intellectual property of these components.

“VSE Aviation has a long history of supporting Honeywell fuel control systems and subcomponents as both a distributor and MRO service provider. We believe this new asset purchase and licence agreement significantly strengthens our existing, long-term relationship with Honeywell and is a testament to the value of our differentiated OEM-focused value proposition. We expect this agreement to provide long-term, sustainable revenue and an improved mid-term EBITDA margin outlook for VSE Aviation from these critical and highly technical aircraft components and associated intellectual property,” says VSE Corp president and CEO John Cuomo.

“We are incredibly excited to secure this licensing agreement with Honeywell because it enables VSE to help extend the life of several marquee engine platforms,” adds VSE Aviation president Ben Thomas. “We intend to drive improved performance for both the engine manufacturers and their operators, deliver more value from the engineering and supply chain of these components and strengthen our partnership with Honeywell.”

VSE acquired the perpetual licence and asset for $105 million.