AAR Extends MRO Reach with HAECO Americas Acquisition and New Contracts

AAR CORP. has announced the acquisition of HAECO Americas from HAECO Group for $78 million, expanding AAR’s reach in the MRO landscape. AAR also aims to use this acquisition to help grow its Repair & Engineering segment.

The acquisition took place in an all-cash transaction, subject to customary adjustments. The purchase price represents a high single-digit multiple of last twelve months EBITDA before the impact of any synergies.

AAR CORP. is a trusted provider of aviation services to customers like:

• MROs
• OEMs
• Commercial operators
• Government operators

As the second largest heavy maintenance provider in North America, HAECO Americas offers heavy aircraft maintenance, repair, and overhaul (MRO) and modification services for commercial airlines at two facilities:

• Greensboro, North Carolina
• Lake City, Florida

“AAR has become the most sought-after heavy maintenance provider in North America, and we are excited to extend our leadership position with the acquisition of HAECO Americas,” said AAR’s Chairman, President and CEO John M. Holmes.

Holmes continued, “Over the last few years, we have significantly invested in training, lean initiatives, and proprietary technology to enhance quality and efficiency in our MRO operations.”

“These efforts have resulted in reduced turn-around times for our customers, higher employee retention, and meaningful increases to operating margins. We plan to apply our successful model to the HAECO Americas facilities and expect to significantly improve profitability and operational performance,” added Holmes.

Holmes proceeded, “In connection with the transaction, we have secured agreements with key customers, totaling over $850M in sales over a multi-year period. These agreements, which effectively sell out the two HAECO Americas facilities, reflect strong demand and our close customer relationships.”

He noted, “Moreover, these new facilities will allow us to further optimize our North American footprint, which we expect will lead to incremental margin expansion overall for our Repair & Engineering segment as we execute the integration.”

HAECO Americas has a team of more than 1,600 skilled professionals with extensive technical expertise in working on airline and cargo aircraft. The workforce has focused on serving as centers of excellence and has performed maintenance on thousands of aircraft over decades.

“We are pleased to welcome the talented HAECO Americas team to AAR,” said Tom Hoferer, AAR’s senior vice president of Repair & Engineering, “Our strong safety culture, partnerships with educational institutions, and focus on career development have made AAR the premier employer for aviation technicians.”

Hoferer added, “We look forward to combining with the HAECO Americas team to deliver outstanding service to our customers.”