WOOD
DALE, Ill., Dec. 20,
2024 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a
leading provider of aviation services to commercial and government
operators, MROs, and OEMs, announced today that it has entered into
a definitive agreement to divest its Landing Gear Overhaul business
to GA Telesis. The transaction is valued at $51 million and is expected to close in the first
quarter of the 2025 calendar year, subject to customary and
regulatory closing conditions. The divestiture will be immediately
accretive to margins and earnings.
The divestiture is part of AAR's strategic plan to optimize its
portfolio by investing in core functions that will accelerate its
targeted growth and margin expansion initiatives.
The transaction with GA Telesis includes AAR's Miami, Florida, based Landing Gear Overhaul
business, part of the Company's Repair & Engineering segment,
that provides full-service landing gear maintenance, repair, and
overhaul services to commercial and government customers. AAR will
remain prime contractor for the United States Air Force Landing
Gear Performance Based Logistics contract, and the current
maintenance services will be continued by GA Telesis as a
subcontractor.
"This transaction will increase our operating
margins, improve our cash flow and enable us to re-allocate
resources to drive further growth in our core
businesses," said John M. Holmes, AAR's Chairman,
President and CEO. "We are confident GA Telesis will continue to
deliver excellent service to the Landing Gear customers."
CIBC Capital Markets served as AAR's financial advisor, and
Jones Day served as AAR's legal
advisor in this transaction.
About AAR
AAR is a global aerospace and defense
aftermarket solutions company with operations in over 20 countries.
Headquartered in the Chicago area,
AAR supports commercial and government customers through four
operating segments: Parts Supply, Repair & Engineering,
Integrated Solutions, and Expeditionary Services. Additional
information can be found at aarcorp.com.
About GA Telesis
GA Telesis, a global leader in
aerospace solutions, is renowned for its unmatched excellence in
aftermarket services and lifecycle management. The GA
Telesis Ecosystem™ is a vast global network spanning 54
locations in 30 countries on six continents. The company's
integrated solutions include parts and distribution services,
logistics solutions, inventory management, leasing and
financing, engine overhaul, and MRO services. GA
Telesis is committed to sustainability through innovative
sustainability initiatives and advanced technologies,
including digital transformation, and using advanced
materials. The company's aerospace systems and connected aircraft
technologies drive efficiency and performance, while its MRO
network and 24/7 AOG support provide unparalleled
reliability.
|
This press release
contains certain statements relating to future business
opportunities and conditions, as well as anticipated benefits of
the proposed divestiture by AAR CORP. (the "Company") of the
Company's Landing Gear Overhaul business (the "Divestiture"). Such
statements are forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995 and reflect
management's expectations about future conditions. Forward-looking
statements may also be identified because they contain words such
as "anticipate," "believe," "continue," "could,'' "estimate,"
"expect," "intend," "likely," "may," "might," "plan," "potential,"
"predict," "project," "seek," "should," "target," "will," "would,"
or similar expressions and the negatives of those terms. Factors
that may cause actual results to differ materially from current
expectations include, among others, risks associated with the
Company's ability to close the Divestiture; the Company's ability
to realize the anticipated benefits of the Divestiture as rapidly
or to the extent anticipated; the effect of the Divestiture on the
Company's operating results and business generally; the amount of
costs, fees and expenses related to the Divestiture; and other
factors that could affect the Company's business, results of
operations and financial condition. These forward-looking
statements are based on beliefs of Company management, as well as
assumptions and estimates based on information currently available
to the Company, and are subject to certain risks and uncertainties
that could cause actual results to differ materially from
historical results or those anticipated. For a discussion of these
and other risks and uncertainties, refer to "Risk Factors" in the
Company's most recent Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q, as well as the Company's other
subsequent filings with the Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize
adversely, or should underlying assumptions or estimates prove
incorrect, actual results may vary materially from those described
and the anticipated benefits of the Divestiture may not be
realized. These events and uncertainties are difficult or
impossible to predict accurately and many are beyond the Company's
control. The Company cautions readers not to place undue reliance
upon any such forward-looking statements, which speak only as of
the date made. The Company assumes no obligation to update any
forward-looking statements to reflect events or circumstances after
the date of such statements or to reflect the occurrence of
anticipated or unanticipated events, except as required by
law.
|
Contact:
Media Team
+1-630-227-5100
Editor@aarcorp.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/aar-announces-divestiture-of-non-core-landing-gear-overhaul-business-to-optimize-portfolio-302336532.html
SOURCE AAR CORP.
