AAR accelerates its aftermarket platform strategy by agreeing to acquire a controlling interest in MRO Holdings
The deal expands AAR’s consolidated adjusted EBITDA margin from about 12% to 16% before synergies and is expected to lift adjusted EPS.
- On Monday, aviation aftermarket services provider AAR announced it would acquire a 65% controlling interest in aircraft maintenance company MRO Holdings for about $1.8 billion.
- Driven by supply-chain constraints and jet delivery delays, the acquisition expands AAR's capacity to service a combined total of nearly 3,000 aircraft per year in its hangars.
- Adding more than $1 billion in annual revenue, the deal enhances AAR's margins while the company funds the purchase through new debt, equity, and a private investment offering.
- AAR CEO John Holmes said the acquisition will "create the largest heavy maintenance MRO in the world," with the company holding an option to buy the remaining 35% stake within six years.
- The transaction is expected to close in AAR's fiscal third quarter ending February 2027, subject to regulatory approvals and customary closing conditions.
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Beatrice Daily Sun
AAR accelerates its aftermarket platform strategy by agreeing to acquire a controlling interest in MRO Holdings
Acquisition significantly enhances AAR's scale, margins, and cash flow profileAdds more than $1 billion in revenue supporting blue-chip, U.S. airline customersExpands AAR's consolidated adjusted EBITDA margins1 from approximately 12% to 16%, before synergiesExpected to be accretive to adjusted EPS in…
Deal Roundup: AAR strikes $4bn-EV deal for Bain-backed MRO; GTCR buys Tactacam
AAR has agreed to acquire a 65% controlling interest in Bain Capital-backed MRO Holdings at a $4bn implied enterprise value, paying about $1.8bn of equity value for the initial stake and repaying roughly $1.3bn of MRO’s existing borrowings.
AAR to buy controlling stake in MRO Holdings
AAR Corp. has agreed to acquire a 65% controlling stake in MRO Holdings at an implied enterprise value of US$4 billion, in a deal that will expand the aviation aftermarket company’s maintenance operations. The transaction values MRO Holdings at 10.7 times its forecast 2026 adjusted EBITDA, including US$75 million in expected annual cost synergies and […]
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