AAR Corp has agreed to acquire a 65% controlling stake in MRO Holdings in a deal valuing the aircraft maintenance provider at an enterprise value of $4 billion.
The transaction will significantly expand AAR Corp’s heavy maintenance footprint, bringing MRO Holdings’ network of facilities across El Salvador, Mexico, Colombia and the US into its aftermarket business.
MRO Holdings employs around 10,000 people and operates 115 lines of airframe maintenance capacity. Around 90% of its revenue comes from US customers.
AAR Corp said the combination would create what it describes as the world’s largest heavy maintenance MRO operation, with the businesses collectively expected to service nearly 3,000 aircraft annually in their hangars.
John M. Holmes, chairman, president and chief executive of AAR Corp, said: “Heavy maintenance is a foundational element of this platform, driving revenue to all other areas of the company.
“Through the acquisition of MRO Holdings, we will create the largest heavy maintenance MRO in the world, servicing a combined total of nearly 3,000 aircraft per year in our hangars.”
AAR Corp also sees opportunities to use the enlarged maintenance network to increase work flowing through its component MRO facilities and support its OEM distribution and software activities.
The company highlighted widebody maintenance and attracting more European and Middle Eastern fleets to its facilities in the Americas as potential areas for further growth.
MRO Holdings is forecast to generate approximately $1 billion in sales and $285 million in adjusted EBITDA during calendar year 2026.
AAR Corp expects around $75 million in annual run-rate cost synergies from the transaction, including procurement savings and operational and administrative efficiencies, with the full benefit targeted within three to four years of closing.
Under the agreement, AAR Corp will initially acquire its 65% interest for an equity value of approximately $1.8 billion and repay around $1.3 billion of MRO Holdings’ existing borrowings. It will also have options to acquire the remaining 35% over the six years following completion.
Roberto Kriete, chairman of MRO Holdings, said the combination would create “a stronger platform with greater scale, deeper technical resources, and a broader ability to serve the world’s leading airlines”.
The transaction has been unanimously approved by AAR’s board and is expected to close during the company’s fiscal third quarter ending February 2027, subject to regulatory approvals and other customary closing conditions.
