EXHIBIT 99.1
AVIATION SALES COMPANY
[GRAPHIC OMITTED]
Release: December 4, 2000
Contact: Dale S. Baker, Chairman/Chief Executive Officer - (954) 538-2000
Michael C. Brant, Chief Financial Officer - (954) 538-2000
Morgen-Walke Associates, Gordon McCoun - (212) 850-5600
AVIATION SALES COMPANY ANNOUNCES COMPLETION OF SALE OF ITS PARTS
REDISTRIBUTION OPERATION TO KELLSTROM INDUSTRIES, INC.
Miramar, Florida, December 4, 2000 - Aviation Sales Company (NYSE:AVS)
today announced that it has completed its previously announced transaction with
Kellstrom Industries, Inc. (NASDAQ:KELL) under which Kellstrom has acquired the
redistribution operations of Aviation Sales. In the transaction, Aviation Sales
received net aggregate consideration of $151.4 million, $122.0 million of which
was paid in cash, and the remainder in subordinated notes in the KAV joint
venture referred to below. The cash proceeds were used by Aviation Sales to
reduce outstanding debt.
Dale S. Baker, Chairman of Aviation Sales Company, stated: "This
transaction is a significant step in our efforts to reduce our debt and position
our company to operate with a normalized capital structure. Coupled with the
sales of other assets which we completed during the second and third quarters of
this year, this sale has enabled us to reduce our outstanding senior debt from
$283 million to $62 million. We are also contemplating the sale of our Dixie
Bearings new parts operation, the proceeds of which will be used to further
reduce senior debt."
Ben Quevedo, the Company's President and Chief Operating Officer,
stated: "We are a much more focused company going forward. The Company will
consist of our six MR&O businesses: TIMCO, which, with its five locations, is
one of the largest independent providers of heavy aircraft maintenance services
in North America; Aerocell Structures, which specializes in the MR&O of airframe
components, including flight surfaces; Caribe Aviation, which specializes in the
MR&O of hydraulic, pneumatic, electrical and electromagnetic aircraft
components; Aircraft Interior Design, which specializes in the refurbishment of
aircraft interior components; TIMCO Engine Center, which refurbishes JT8D
engines; and TIMCO Engineered Systems, which provides engineering services to
our MR&O operations and our customers."
In connection with the transaction, Aviation Sales and Kellstrom have
formed a 50/50 joint venture company, KAV Inventory, LLC ("KAV"), which has
acquired from Aviation Sales substantially all of the aircraft and engine spare
parts inventory and the whole engine inventory of Aviation Sales' redistribution
operation, as well as certain rotable parts inventories from two of Aviation
Sales' MR&O
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AVIATION SALES COMPANY COMPLETES SALE OF ITS AIRCRAFT PARTS
REDISTRIBUTION OPERATION TO KELLSTROM INDUSTRIES, INC. PAGE 2
operations. A portion of the purchase price received by Aviation Sales at the
closing was borrowed by KAV from a syndicate of financial institutions led by
Bank of America, N.A., with the balance paid in the form of subordinated notes
due after the repayment of such institutional financing. As part of the
transactions, KAV consigned the purchased inventory to Kellstrom, and Kellstrom
will offer the purchased inventory for sale to its customers.
As part of the transaction, Kellstrom purchased certain other assets of
Aviation Sales' redistribution operation (subject to certain of the liabilities
of that operation). Kellstrom also has entered into a sublease of Aviation
Sales' 545,000 square foot redistribution center in Miramar, Florida and leased
certain other property, plant and equipment. Further, as part of the
transaction, Aviation Sales entered into a cooperation agreement with Kellstrom
whereby Aviation Sales has agreed to provide repair services for the KAV parts
inventory as well as repair services to Kellstrom with respect to Kellstrom's
parts inventory, and Kellstrom has agreed to supply parts to Aviation Sales'
MR&O operations, on an ongoing basis.
Mr. Baker further stated: "We look forward to continuing to grow our
relationship with Kellstrom, and we expect that they will be a very important
business partner for us going forward. The combined Kellstrom/Aviation Sales
redistribution operation will be the largest parts redistribution business in
the world and will be an important preferred supplier to our operations.
Aviation Sales continues to be one of the largest independent MR&O operations in
the world. Going forward, the two companies will work together to develop
innovative component logistic and repair management programs for our current and
future customers."
Salomon Smith Barney acted as the financial advisor to Aviation Sales
in connection with the transaction.
Aviation Sales Company is a leading independent provider of fully
integrated aviation maintenance, repair and overhaul services, including
aircraft heavy maintenance, component repair and overhaul and leasing, for major
commercial airlines and maintenance and repair facilities.
Aviation Sales Company Safe Harbor Statement:
This press release contains certain forward-looking statements that are
made pursuant to the safe harbor provisions of the Private Securities Reform Act
of 1995. Forward-looking statements involve known and unknown risks and
uncertainties, which may cause the Company's actual results in future periods to
differ materially from forecasted results. A number of factors, including those
identified below, could adversely affect the Company's ability to obtain these
results: available capital to continue to support and further expand the
Company's operations, the Company's ability to acquire adequate inventory and to
obtain favorable pricing for such inventory, competitive pricing for the
Company's products and services, increased competition in the aircraft spare
parts redistribution and MR&O markets, the ability to consummate suitable
acquisitions, the continuing ability to effectively integrate acquisitions,
economic factors which affect the airline industry, and changes in government
regulations. Certain of these risks are described in the Company's filings with
the Securities and Exchange Commission (SEC). Copies of the Company's SEC
filings are available from the SEC or may be obtained upon request from the
Company. The Company does not undertake any obligation to update the information
contained herein, which speaks only as of this date.
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