AAR accelerates its aftermarket platform strategy by agreeing to acquire a controlling interest in MRO Holdings
AAR CORP. agreed to acquire a 65% controlling interest in MRO Holdings at an implied enterprise value of $4.0 billion, or 10.7x forecasted calendar 2026 adjusted EBITDA of $285 million. MRO Holdings is expected to generate roughly $1.0 billion of calendar 2026 sales at a ~27% adjusted EBITDA margin, lifting AAR's consolidated adjusted EBITDA margin from ~12% to ~16% before synergies, with $75 million of run-rate cost synergies targeted and a 19-20% margin goal within three to four years.
Key figures
- Guidance
- Adjusted EBITDA margin target of approximately 19% to 20% within three to four years post-closing
- Deal Value Usd
- 4000000000
- New debt
- $2.1 billion
- Implied ev
- $4.0 billion
- Debt repaid
- $1.3 billion
- Equity issued
- $780 million at $135 per share
- Pipe proceeds
- $230 million
- Acquired stake
- 65%
- Closing timing
- AAR fiscal Q3 ending February 2027
- Tax benefits pv
- $150 million
- Mro ebitda margin
- 27%
- Ev ebitda multiple
- 10.7x
- Mro revenue cy2026
- $1.0 billion
- Run rate synergies
- $75 million
- Equity value initial
- $1.8 billion
- Mro adj ebitda cy2026
- $285 million
- Net leverage at close
- 3.6x
- Pro forma ebitda margin
- 16%
AI analysis
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