AAR Corp. has agreed to acquire a 65% controlling stake in MRO Holdings at an implied enterprise value of US$4 billion, in a deal that will expand the aviation aftermarket company’s maintenance operations.
The transaction values MRO Holdings at 10.7 times its forecast 2026 adjusted EBITDA, including US$75 million in expected annual cost synergies and excluding transaction-related tax benefits with an estimated present value of about US$150 million, AAR said.
MRO Holdings provides aircraft maintenance, repair and overhaul services across the Americas. The company has about 10,000 employees and 115 airframe maintenance lines at facilities in El Salvador, Mexico, Colombia and the United States. About 90% of its revenue comes from U.S. customers.
AAR said the deal would create the world’s largest heavy maintenance, repair and overhaul provider, with the combined business expected to service nearly 3,000 aircraft a year in its hangars.
The acquisition will also broaden AAR’s maintenance offering and create opportunities to expand its component repair, original equipment manufacturer distribution and aviation software businesses, the company said.
“We see more growth opportunities for the heavy maintenance business itself, including wide-body maintenance and increased capture of European and Middle Eastern fleets for service in the Americas,” AAR Chairman, President and Chief Executive John Holmes said.
AAR said the transaction structure would allow it to partner with MRO Holdings’ existing management team while retaining financial flexibility to pursue its broader strategy.
Holmes described the acquisition as a transformational step in AAR’s long-term growth plan.
