VSE Company, a publicly traded aviation aftermarket elements distributor and MRO providers supplier, introduced Jan. 29 that it has reached an settlement to amass Precision Aviation Group for about $2 billion in money and fairness consideration.
The transaction — topic to customary closing circumstances and regulatory approvals — is predicted to considerably increase VSE’s scale, capabilities and international footprint within the aviation aftermarket.
Below the phrases of the settlement, VSE pays roughly $1.75 billion in money and challenge about $275 million in fairness consideration to PAG’s present proprietor, GenNx360 Capital Companions, with customary lock-up preparations. The deal additionally consists of as much as $125 million in contingent earnout consideration primarily based on PAG’s 2026 efficiency. On a professional forma foundation, PAG is predicted to extend VSE’s full-year 2025 aviation income by an estimated ~50% and assist an expanded adjusted EBITDA margin profile.
Based in 1959 and headquartered in Miramar, FL, VSE has remodeled into a significant supplier of aviation aftermarket elements distribution and MRO providers, serving business, enterprise and common aviation (B&GA), cargo, navy and rotorcraft prospects globally. VSE’s built-in aviation phase combines elements distribution, technical gross sales, rotable exchanges, part and engine accent MRO, and provide chain assist. Its current strategic actions have centered on streamlining the enterprise towards a pure-play aviation aftermarket platform, together with divestitures of non-core segments and acquisitions of aviation-focused companies. In 2024, VSE’s aviation phase posted report income and profitability as a part of an total ~$1.1 billion income 12 months.
PAG, based in 1996 and headquartered in Atlanta, is a world supplier of aviation aftermarket MRO, distribution and provide chain options serving business, B&GA, rotorcraft and protection markets. PAG operates 29 places worldwide, employs greater than 1,000 folks, serves over 10,000 prospects and performs greater than 175,000 repairs yearly. PAG expects that its 2025 adjusted income completed at about $615 million. Its service portfolio spans part and system restore, engine providers, avionics options, and proprietary engineering and elements capabilities.
Rationale
VSE leaders stated the acquisition is predicted to broaden technical capabilities, deepen buyer and provider relationships and increase after-sales service choices globally. The mixed platform will characteristic an in depth MRO community and enhanced proprietary restore and distribution content material designed to strengthen buyer assist, shorten turnaround instances and enhance whole value of possession for operators.
“This acquisition represents a pivotal second for VSE and a significant milestone in our technique to construct a scaled, differentiated, higher-margin aviation aftermarket platform,” stated John Cuomo, President and CEO of VSE. “We’ve lengthy admired PAG and think about it as an distinctive strategic match throughout the VSE portfolio.
The transaction is anticipated to shut in in 2Q26.
In December, VSE purchased business wheel and brake aftermarket MRO service supplier and distributor Aero 3 for $350 million.
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