AAR announces divestiture of non-core Landing Gear Overhaul business to optimize portfolio
AAR CORP. (NYSE: AIR) has announced the sale of its Landing Gear Overhaul business to GA Telesis for $51 million. The transaction, expected to close in Q1 2025, is part of AAR's strategic portfolio optimization plan and will be immediately accretive to margins and earnings. The deal includes AAR's Miami-based Landing Gear Overhaul operations, which provides maintenance, repair, and overhaul services to commercial and government customers.
While divesting this non-core business, AAR will maintain its position as prime contractor for the United States Air Force Landing Gear Performance Based Logistics contract, with GA Telesis continuing the maintenance services as a subcontractor.
AAR CORP. (NYSE: AIR) ha annunciato la vendita della sua attività di revisione delle ruote di atterraggio a GA Telesis per 51 milioni di dollari. La transazione, prevista per chiudere nel primo trimestre del 2025, fa parte del piano strategico di ottimizzazione del portafoglio di AAR e sarà immediatamente favorevole ai margini e agli utili. L'affare comprende le operazioni di revisione delle ruote di atterraggio con sede a Miami di AAR, che fornisce servizi di manutenzione, riparazione e revisione ai clienti commerciali e governativi.
Pur dismettendo questa attività non centrale, AAR manterrà la sua posizione di contraente principale per il contratto di logistica basata sulle prestazioni delle ruote di atterraggio della United States Air Force, con GA Telesis che continuerà i servizi di manutenzione come subappaltatore.
AAR CORP. (NYSE: AIR) ha anunciado la venta de su negocio de rehabilitación de trenes de aterrizaje a GA Telesis por 51 millones de dólares. La transacción, que se espera cierre en el primer trimestre de 2025, es parte del plan de optimización estratégica del portafolio de AAR y será inmediatamente beneficiosa para los márgenes y ganancias. El acuerdo incluye las operaciones de rehabilitación de trenes de aterrizaje de AAR ubicadas en Miami, que ofrecen servicios de mantenimiento, reparación y rehabilitación a clientes comerciales y gubernamentales.
Mientras desinvierte este negocio no esencial, AAR mantendrá su posición como contratista principal para el contrato de logística basada en el rendimiento de trenes de aterrizaje de la Fuerza Aérea de los Estados Unidos, con GA Telesis continuando los servicios de mantenimiento como subcontratista.
AAR CORP. (NYSE: AIR)는 GA Telesis에 자사의 랜딩 기어 오버홀 사업을 5,100만 달러에 판매한다고 발표했습니다. 이 거래는 2025년 1분기에 마감될 예정이며, AAR의 전략적 포트폴리오 최적화 계획의 일환으로, 즉시 마진과 수익에 긍정적 영향을 미칠 것입니다. 이 거래에는 AAR의 마이애미에 위치한 랜딩 기어 오버홀 운영이 포함되어 있으며, 상업 및 정부 고객에게 유지 보수, 수리 및 오버홀 서비스를 제공합니다.
AAR는 비핵심 사업을 매각하더라도, 미 공군 랜딩 기어 성과 기반 물류 계약의 주요 계약자 지위를 유지하며, GA Telesis는 하청업체로서 유지 보수 서비스를 지속할 것입니다.
AAR CORP. (NYSE: AIR) a annoncé la vente de son activité de révision de trains d'atterrissage à GA Telesis pour 51 millions de dollars. La transaction, qui devrait se clôturer au premier trimestre de 2025, s'inscrit dans le cadre du plan d'optimisation stratégique du portefeuille d'AAR et sera immédiatement bénéfique pour les marges et les bénéfices. L'accord comprend les opérations de révision de trains d'atterrissage basées à Miami, qui fournissent des services de maintenance, de réparation et de révision à des clients commerciaux et gouvernementaux.
Tout en se séparant de cette activité non essentielle, AAR conservera sa position de contractant principal pour le contrat de logistique basée sur la performance des trains d'atterrissage de l'US Air Force, GA Telesis continuant les services de maintenance en tant que sous-traitant.
AAR CORP. (NYSE: AIR) hat den Verkauf seines Geschäftsbereichs für die Überholung von Fahrwerken an GA Telesis für 51 Millionen Dollar bekannt gegeben. Die Transaktion, die voraussichtlich im ersten Quartal 2025 abgeschlossen wird, ist Teil des strategischen Portfoliomanagementplans von AAR und wird sofort positiv auf die Margen und Erträge wirken. Der Deal umfasst die in Miami ansässigen Überholungsoperationen von AAR, die Wartungs-, Reparatur- und Überholungsdienste für gewerbliche und staatliche Kunden anbietet.
Während AAR dieses nicht zum Kerngeschäft gehörende Unternehmen verkauft, wird das Unternehmen seine Position als Hauptauftragnehmer für den Vertrag über leistungsorientierte Logistik von Fahrwerken der United States Air Force beibehalten, während GA Telesis als Subunternehmer die Wartungsdienste fortführen wird.
- Sale value of $51 million
- Immediate positive impact on margins and earnings
- Retention of USAF prime contractor status
- Strategic optimization of core business portfolio
- Loss of revenue stream from Landing Gear Overhaul business
Insights
From a market perspective, this move could catalyze AAR's valuation multiple expansion, as streamlined businesses typically command premium valuations. The retention of the USAF contract while divesting operational responsibilities demonstrates sophisticated deal structuring that preserves strategic relationships while reducing operational complexity.
For context, landing gear overhaul is a capital-intensive, highly specialized segment with long maintenance cycles. By divesting this unit while maintaining the USAF contract relationship, AAR reduces exposure to cyclical MRO segments while preserving strategic military relationships. This positions AAR to better capitalize on commercial aviation's recovery by focusing resources on faster-growing, higher-margin services. The
The divestiture is part of AAR's strategic plan to optimize its portfolio by investing in core functions that will accelerate its targeted growth and margin expansion initiatives.
The transaction with GA Telesis includes AAR's
"This transaction will increase our operating margins, improve our cash flow and enable us to re-allocate resources to drive further growth in our core businesses," said John M. Holmes, AAR's Chairman, President and CEO. "We are confident GA Telesis will continue to deliver excellent service to the Landing Gear customers."
CIBC Capital Markets served as AAR's financial advisor, and Jones Day served as AAR's legal advisor in this transaction.
About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the
About GA Telesis
GA Telesis, a global leader in aerospace solutions, is renowned for its unmatched excellence in aftermarket services and lifecycle management. The GA Telesis Ecosystem™ is a vast global network spanning 54 locations in 30 countries on six continents. The company's integrated solutions include parts and distribution services, logistics solutions, inventory management, leasing and financing, engine overhaul, and MRO services. GA Telesis is committed to sustainability through innovative sustainability initiatives and advanced technologies, including digital transformation, and using advanced materials. The company's aerospace systems and connected aircraft technologies drive efficiency and performance, while its MRO network and 24/7 AOG support provide unparalleled reliability.
This press release contains certain statements relating to future business opportunities and conditions, as well as anticipated benefits of the proposed divestiture by AAR CORP. (the "Company") of the Company's Landing Gear Overhaul business (the "Divestiture"). Such statements are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and reflect management's expectations about future conditions. Forward-looking statements may also be identified because they contain words such as "anticipate," "believe," "continue," "could,'' "estimate," "expect," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms. Factors that may cause actual results to differ materially from current expectations include, among others, risks associated with the Company's ability to close the Divestiture; the Company's ability to realize the anticipated benefits of the Divestiture as rapidly or to the extent anticipated; the effect of the Divestiture on the Company's operating results and business generally; the amount of costs, fees and expenses related to the Divestiture; and other factors that could affect the Company's business, results of operations and financial condition. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. For a discussion of these and other risks and uncertainties, refer to "Risk Factors" in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as the Company's other subsequent filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described and the anticipated benefits of the Divestiture may not be realized. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law. |
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Editor@aarcorp.com
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SOURCE AAR CORP.
FAQ
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