AAR buys $1.8 billion controlling stake in MRO Holdings, WSJ reports

Investing.com -- Aviation services provider AAR Corp (NYSE: AIR) has agreed to acquire a 65% controlling stake in privately held aircraft maintenance company MRO Holdings for $1.8 billion, according to a report from The Wall Street Journal citing people familiar with the matter. Under the terms of the transaction, Wood Dale, Illinois-based AAR will also hold an option to purchase the remaining 35% interest in MRO within six years following the deal's close.

The transaction structure involves AAR issuing approximately $780 million in new equity to MRO’s current investors, which include private equity firm Bain Capital, founder Roberto Kriete’s family, and Caoba Capital. Bain, which initially took a minority stake in MRO in 2024, will retain a residual position in the maintenance firm while simultaneously taking an equity stake in AAR.

Against that backdrop, the deal marks a substantial strategic push by AAR to bolster its margin profile and market positioning. People familiar with the matter indicated that AAR expects the integration to elevate its EBITDA margins to 19%–20% within three to four years post-close, representing a notable expansion from its current 13%–14% range.

With a market capitalization of roughly $4.7 billion, AAR has seen its shares advance about 30% over the past year, driven largely by robust demand across its commercial distribution and repair segments. Investors will likely monitor the formal announcement for further commentary on integration timelines, anti-trust clearance, and the balance-sheet impact of the equity issuance.

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