What Happened
Strategic Acquisition Positions Company For Growth
AAR Corp has announced a definitive agreement to acquire a 65% controlling stake in MRO Holdings, a heavy maintenance provider, in a deal valued at $4 billion. The acquisition is expected to drive growth and increase AAR Corp’s adjusted EBITDA margins to 19-20%. With the deal, AAR Corp becomes the largest heavy maintenance provider globally, servicing approximately 3,000 aircraft annually. This move may capitalize on the aerospace industry’s supply chain bottlenecks, as airlines extend the life cycles of their existing fleets, according to TradingView News.