AAR Acquires Majority Stake in MRO Holdings
AAR Corp. has agreed to acquire a 65% stake in MRO Holdings, a provider of aircraft maintenance services, in a multibillion-dollar deal. The acquisition values MRO Holdings at $4 billion and is expected to create the world's largest heavy maintenance MRO. The deal is set to close with AAR financing it through new debt, shares, and cash.
Neutral
The acquisition is expected to result in cost synergies and tax benefits for AAR. MRO Holdings has over four decades of experience and operates facilities in El Salvador, Mexico, Colombia, and the United States. The deal is subject to regulatory approval and is expected to close within the next few years.
Positive
The acquisition is expected to create opportunities for growth in widebody aircraft maintenance and attract European and Middle Eastern fleets to be serviced in the Americas. AAR expects to generate additional volume at its component MRO facilities and have a broader channel for distribution relationships. The deal is expected to have a positive effect on AAR's adjusted earnings per share.
Negative
The acquisition may lead to job losses and disruption to MRO Holdings' operations. The deal is subject to regulatory approval and may face opposition from stakeholders. The impact of the deal on MRO Holdings' employees and customers remains to be seen.
- AAR Corp. to acquire 65% stake in MRO Holdings for $4 billion
- MRO Holdings operates facilities in El Salvador, Mexico, Colombia, and the United States
- Deal expected to create the world's largest heavy maintenance MRO
- AviacionlineAAR to acquire 65% of MRO Holdings, parent of El Salvador's Aeroman, in multibillion-dollar deal
Read the full report · Aviacionline ↗