AAR Corp. has acquired American Distributors Holding Co., LLC (ADI) for US$146 million in an all-cash transaction funded through its revolving credit facility. The acquisition immediately strengthens AAR’s Parts Supply segment by expanding its distribution activities with additional product lines and a wider network of original equipment manufacturer (OEM) relationships.
Founded in 1983, ADI has developed into a leading distributor for both commercial and defence customers across the aerospace and defence industries. Employing around 400 staff, the company delivers value-added distribution services, supplying parts and assemblies to its OEM partners. ADI operates from six sites located in the United States, the United Kingdom, and India. For the twelve months ending June 30, 2025, the company reported revenues of US$149 million and EBITDA of US$15.2 million.
The purchase provides AAR with several strategic benefits. By incorporating ADI’s electronics-focused product lines, AAR will broaden its distribution portfolio and gain access to a fragmented but fast-growing market. In addition, the transaction enhances AAR’s position with new OEM partnerships and deepens relationships with existing partners. The company has indicated it will leverage its market presence to significantly grow ADI’s revenue base.
AAR also expects the acquisition to support margin improvements. These gains are projected to come from sales growth, greater operational efficiency, and ongoing business optimisation.
The move highlights AAR’s intention to consolidate its role in the aerospace supply chain, expand its international footprint, and increase its share of the high-growth distribution segment. The acquisition of ADI reflects a long-term strategy to strengthen both scale and profitability in a sector undergoing significant expansion.
