News Article | 7/17/2006

Aviall Pushes Ahead on 325,000-SF Expansion

DALLAS-With a merger looming overhead, Aviall, Inc. has cleared all decks to double its 325,000-sf headquarters and central warehouse at Dallas/Fort Worth International Airport. Work will begin before the month ends.

Aviall’s third quarter activity will include the closing of a $1.7-billion buyout by Chicago-based Boeing Co. Hillwood, with deep local ties to Boeing, won the construction nod to add 250,000 sf of warehouse and distribution space onto the HQ building at 2750 Regent Blvd. plus build a 75,000-sf structure at the northern end of the tract. The plan calls for a January 2007 delivery.

In early April, Aviall started to lay groundwork for the expansion on airport-leased land near the intersection of Interstate 635 and North Royal lane. The existing lease runs until 2020, with extensions embedded into it.

According to this morning’s press release, the company’s six consecutive years of record sales sparked the expansion plan. Last year’s sales were $1.29 billion, representing an 11% increase in one year.

The addition and new building are climate-controlled designs with energy-efficient lighting and remote sensors. The overall project includes room for training, sales, technology and extra parking. The project will top $13 million without all the extra bells and whistles, based on today’s average construction cost in the region.

In May, Aviall and Boeing announced a definitive merger agreement, expected to close in Q3. The terms, at the time, were $48 per share and the assumption of $350 million in debt. After the merger, Aviall will report to Boeing Commercial Aviation Services and operate as a wholly owned subsidiary.