VSE Corporation ( VSEC ) shares rose on Tuesday following the announcement of a definitive agreement to sell its Fleet business segment, Wheeler Fleet Solutions, to One Equity Partners for up to $230 million.

Wheeler Fleet Solutions is a parts distributor and engineering solutions provider servicing the medium and heavy-duty fleet market.

Wheeler Fleet Solutions employs approximately 385 people across three primary distribution centers in Pennsylvania, Mississippi and Texas.

The transaction is part of VSE’s strategic transformation, aimed at simplifying the business and focusing on its core business — aviation aftermarket services, according to a press release.

Also Read: Kim Kardashian’s SKIMS Joins Forces With Nike For Fitness Fashion, Stock Gains

John Cuomo, President and CEO of VSE, expressed that the divestiture is the final step in the company’s portfolio transformation, which will enhance its global leadership position in the aviation aftermarket parts and services market.

The sale includes a $140 million cash payment at closing, a $25 million seller note, and up to $65 million in contingent earnout consideration.

The deal is expected to close in the second quarter of 2025, subject to customary closing conditions.

According to Benzinga Pro, VSEC stock has gained over 41% in the past year. Investors can gain exposure to the stock via iShares Microcap ETF .

Price Action: VSEC shares are trading higher by 1.99% to $99.22 at last check Tuesday.

Read Next:

Why Intel, Airbnb, Joby Aviation Are Among JPMorgan’s Short Ideas

Image sourced from Shutterstock.