AAR Corp. to Acquire Majority Stake in MRO Holdings for ~$2.6B in Cash and Stock

AAR CORP. has entered into a definitive agreement to acquire a 65% majority stake in MRO Holdings, Inc. ("MRO Panama"). The total consideration for the acquisition is approximately $2.6 billion, comprising ~$1.82 billion in cash and ~$781 million in newly issued Series A Convertible Preferred Stock. The transaction will be partially funded by a concurrent $231.6 million private placement of common stock.

Key Details

• Acquisition Terms: AAR will acquire a 65% interest for an estimated cash payment of $1.82 billion and 5,783.894 shares of Series A Preferred Stock valued at $780.8 million. AAR also has an option to acquire an additional 5% stake.
• Financing: The company secured committed debt financing and concurrently entered into agreements for a $231.6 million private placement (PIPE) of 2,215,791 common shares at $104.50 per share to fund the cash portion of the transaction.
• Timeline: The acquisition is expected to close in AAR's fiscal third quarter ending February 2027, subject to regulatory approvals and other customary closing conditions.