Aviation services company AAR has agreed to acquire a 65% stake in Bain Capital-backed aircraft maintenance provider MRO Holdings for approximately $1.8bn, in a deal that will see the the PE firm retain an interest in the business, according to a report by the Wall Street Journal.
The report cites unnamed people familiar wit the matter as saying that under the terms of the transaction AAR has an option to acquire the remaining 35% of MRO Holdings within six years of closing.
MRO Holdings, based in Wood Dale, Illinois, operates aircraft maintenance and modification facilities across the US, Mexico, El Salvador and Colombia. Around 90% of its revenue is generated from US customers, primarily airlines.
Bain Capital invested in MRO Holdings in 2024, taking a minority position alongside the family of founder Roberto Kriete and Caoba Capital. Under the new transaction, Bain and the other existing investors will retain exposure to MRO through shares in AAR.
AAR is expected to issue approximately $780m of its own stock to MRO’s investors as part of the transaction. The company, founded in 1955, operates across aircraft parts distribution as well as maintenance, repair and overhaul services.
The acquisition is designed to expand AAR’s maintenance capacity and geographic reach, while increasing its exposure to the growing demand for aircraft servicing.
AAR’s shares have risen by around 30% over the past year, supported in part by stronger demand for aircraft parts distribution. The company expects the MRO transaction to contribute to an improvement in profitability, with Ebitda margins projected to reach between 19% and 20% within three to four years following completion, compared with a current range of approximately 13% to 14%.
