AAR to buy 65% of MRO Holdings for about $1.8 billion
AAR said it expects the deal to close in its fiscal third quarter ending February 2027, subject to approvals and closing conditions.
8 billion. The deal is expected to expand AAR's maintenance, repair and overhaul footprint and add capacity as airlines face supply-chain constraints and delays in new jet deliveries. AAR shares rose 6% in extended trading. CEO John Holmes said the acquisition would create the largest heavy maintenance MRO in the world, serving nearly 3,000 aircraft a year in its hangars.
MRO Holdings has maintenance and modification facilities in the United States, Mexico, El Salvador and Colombia, and about 90% of its revenue comes from sales to US customers. The company is backed by investors including Bain Capital, and AAR has the option to buy the remaining 35% within six years of closing. AAR said it expects to finance the deal with new debt, along with about $780 million of equity issued to existing MRO Holdings shareholders and proceeds from a private investment in public equity (PIPE) offering. The transaction is slated to close in AAR's fiscal third quarter ending February 2027, pending regulatory approvals and other customary closing conditions.