AAR agrees to buy control of MRO Holdings in leveraged expansion

AAR ($AIR) agreed to acquire a 65% controlling stake in MRO Holdings for approximately $1.8 billion in equity consideration and repay about $1.3 billion of the target’s borrowings. The transaction implies a $4 billion enterprise value for MRO Holdings. Funding is expected to include roughly $2.1 billion of new debt, $780 million of AAR shares issued to sellers and a $230 million private equity placement.

The deal would substantially increase AAR’s aircraft-maintenance capacity and add a business forecasting around $1 billion in annual sales. Management targets $75 million of annual cost synergies within three to four years. Net leverage is expected to reach about 3.6 times at closing, including those projected synergies. Completion is targeted for the fiscal quarter ending February 2027, subject to regulatory and customary approvals; options cover the remaining 35% stake.

Sources:

• AAR PRNewswire acquisition release, reproduced by StockTitan