AAR Corp, a global aerospace and defense aftermarket solutions company, has announced the divestiture of its non-core landing gear overhaul business to GA Telesis. The transaction, valued at $51 million, is expected to close in the first quarter of the 2025 calendar year.
The divestiture is anticipated to be immediately accretive to margins and earnings, aligning with AAR's strategic plan to optimize its portfolio by investing in core functions that will accelerate targeted growth and margin expansion initiatives.
AAR's Miami, Florida-based landing gear overhaul business, providing full-service landing gear maintenance, repair, and overhaul services to commercial and government customers, is part of the transaction. AAR will remain the prime contractor for the United States Air Force landing gear performance-based logistics contract, while GA Telesis will continue the current maintenance services as a subcontractor.
The company's chairman, president, and CEO, John M. Holmes, stated that the transaction will increase operating margins, improve cash flow, and enable the reallocation of resources to drive further growth in core businesses.
CIBC Capital Markets served as AAR's financial advisor, and Jones Day served as the company's legal advisor in this transaction.
AAR Corp supports commercial and government customers through four operating segments: parts supply, repair & engineering, integrated solutions, and expeditionary services.
GA Telesis, a global leader in aerospace solutions, operates a vast global network spanning 54 locations in 30 countries on six continents, offering integrated solutions including parts and distribution services, logistics solutions, inventory management, leasing and financing, engine overhaul, and MRO services.
The press release did not provide specific financial metrics or comparative data from the previous period. Following these announcements, the company's shares moved -0.0%, and are now trading at a price of $60.57. Check out the company's full 8-K submission here.
