VSE Corp to Acquire Precision Aviation Group for $2.025 Billion

By Chris Stiles • Thursday, January 29 12:21 • Permanent Link

VSE Corporation ("VSE") has announced a definitive agreement to acquire Precision Aviation Group, Inc. ("PAG") in a transaction valued at approximately $2.025 billion. This acquisition is expected to significantly expand VSE's scale and enhance its engine and component service capabilities across the aviation aftermarket.

Preliminary estimates of VSE's operating results for the full year 2025 indicate notable growth. The company anticipates its full-year 2025 revenue to be in the range of approximately $1.101 to $1.115 billion, representing an increase from the previous period. Furthermore, VSE estimates its full-year 2025 adjusted EBITDA to be approximately $176 to $184 million, demonstrating a positive trajectory in this key financial metric.

Following the acquisition, VSE's consolidated adjusted EBITDA margin is expected to exceed 20% over the next few years as integration and synergy initiatives progress. Additionally, PAG's adjusted EBITDA margin is expected to be immediately accretive to VSE's consolidated adjusted EBITDA margin.

The acquisition is also anticipated to expand VSE's presence in the aviation aftermarket, with the combined company expected to operate 60 locations worldwide. Furthermore, VSE estimates more than $15 million of annualized synergy opportunities over the next few years, driven by cross-selling, insourcing of product support and repairs, operational and cost efficiencies, procurement savings, network optimization, and working capital and supply chain improvements.

The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.

VSE plans to fully disclose its fourth quarter and full year 2025 results, along with its 2026 outlook, in the coming month. The company will also host a presentation, conference call, and question-and-answer session on January 29, 2026, to discuss the acquisition.

As a result of these announcements, the company's shares have moved 1.34% on the market, and are now trading at a price of $214.18. For the full picture, make sure to review VSE CORP's 8-K report.

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