AAR to buy 65% of MRO Holdings, expanding scale and margins
Sep 28, 2026, 4:54 PM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting
Material scale expansion and higher long-term margins likely lift intrinsic value; EPS accretion in year one post-close supports a constructive re-rating, though near-term levered balance sheet and integration risk may temper initial moves.
AI summary
What happened, with direct paths to the underlying reporting
AAR Corp will acquire 65% of MRO Holdings for about $4.0 billion, creating a larger heavy-maintenance MRO platform and enabling significant scale. The deal yields a pro forma EBITDA margin of roughly 16% before synergies, with $75 million of run-rate cost synergies and a target of 19–20% within 3–4 years, while delivering EPS accretion in the first full year post-close and a plan to delever toward 2.0–2.5x.
AAR to acquire 65% of MRO Holdings; EV around $4.0B.
Pro forma EBITDA margin ~16%; target 19–20% in 3–4 years.
Close expected in fiscal Q3 2027; debt ~ $2.1B.
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