AAR to Acquire 65% of MRO Holdings for $4B, Creating World's Largest Heavy Maintenance MRO
AIR sits 51% above its 52-week low of $76.1.
Summary
AAR signed a definitive agreement to acquire a 65% controlling interest in MRO Holdings at a $4.0B implied enterprise value, creating the world's largest heavy maintenance MRO. The deal adds ~$1B in revenue and lifts pro forma adjusted EBITDA margin from ~12% to ~16% before synergies, with a target of 19-20% within 3-4 years. Funding includes $2.1B new debt, $780.8M Series A preferred stock, and a $231.6M PIPE at $104.50/share led by The Pritzker Organization, with call options for remaining MRO units. Expected close is fiscal Q3 ending February 2027, subject to regulatory approvals. This follows the earlier Dow Jones report of a structured deal; today's release provides full terms and financial impact. The transaction is expected to be accretive to adjusted EPS in the first full fiscal year post-closing. AAR sees 2027 sales growth in the low teens. AAR is buying the majority stake in MRO Holdings for $1.82 billion cash.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The 8-K details the $1.82B cash price, $780.8M Series A preferred stock, $231.6M PIPE at $104.50/share, and call options for remaining MRO units.
At the time of this announcement, AIR was trading at $115.16 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $4.6B. The 52-week trading range was $76.10 to $154.00. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: PR Newswire.