AAR Announces Acquisition of ADI American Distributors
AAR CORP. has acquired American Distributors Holding Co., LLC (ADI), a parts distributor that specializes in components and assemblies, for $146 million. AAR CORP. provides aviation services to commercial and government operators, MROs and OEMs.
The acquisition took place in an all-cash transaction funded using the company’s existing revolving credit facility. It expands AAR’s new parts distribution activity with new additional product lines and OEM relationships. The business will become part of AAR’s Parts Supply segment.
ADI distributes parts to commercial and defense customers across the aerospace and defense industry. The company employs around 400 team members who offer value-added distribution services, including parts and assemblies, to its OEM partners.
ADI operates in six locations across the US, UK and India. For the trailing twelve months ended June 30, 2025, ADI generated $149 million in revenue and $15.2 million in EBITDA.
What are the benefits of the acquisition?
- Expands AAR’s new parts distribution offerings: ADI’s complementary electronics product lines broaden AAR’s new parts distribution offerings. This represents a large market with fragmentation and opportunities for growth.
- Grows partnerships and revenues: The acquisition adds new OEM partnerships to AAR’s offerings and deepens AAR’s existing OEM relationships. The company plans to leverage its existing market position to grow ADI revenues.
- Positions ADI for margin improvement: AAR expects margin improvement through sales growth, business optimization and operational efficiency.
AAR’s Chairman, President and CEO John M Holmes said, “AAR Distribution is AAR’s fastest growing activity, averaging more than 20% organic growth in each of the last four years.”
“This acquisition will strengthen our offering and position us for continued future growth. We expect to leverage AAR’s broad market reach to increase ADI’s market share and expand their product offering,” added Holmes.
“ADI is excited to become part of AAR,” said David Beck, ADI’s founder and CEO, “Since ADI’s founding, we have focused on providing exceptional service to our vendors and customers, and we will be maintaining this focus with AAR while expanding the reach of our solutions.”