AAR to sell Telair Cargo Group to TransDigm for US$725m

AAR has agreed to sell its Telair Cargo Group to TransDigm for a purchase price of US$725m in cash, subject to adjustments. The Telair Cargo Group is comprised of Telair International, Telair U.S., and Nordisk Aviation Products. AAR will report its Telair Cargo Group as discontinued operations beginning in the third quarter of FY 2015 and the sale is expected to close in the fourth quarter ending May 31st, 2015, subject to regulatory approval. When the sale closes, AAR expects to report a pre-tax gain of approximately US$200 million after expenses and fees. AAR further announced its intention to sell its unprofitable Precision Systems Manufacturing business and will report it as a discontinued operation and record an impairment charge of approximately US$40m in the third quarter of FY 2015.