AAR CORP acquires Triumph Group Product Support business

AAR CORP acquired Triumph Group Product Support business for $725 million in cash, a transaction completed in March 2024, structured as all cash (financed with a $550 million notes offering and an amended revolving credit facility upsized from $620 million to $825 million).

Triumph Group Product Support business operates in Repair & Engineering (Component Services), is based in Five primary locations across the commercial and military aftermarkets (including APAC), had revenue of about Approximately $280 million projected revenue and $55 million EBITDA (20% margin) for FY ending March 31, 2024.. AAR acquired Triumph Group's (NYSE: TGI) Product Support business, a leading global provider of specialized maintenance, repair and overhaul capabilities for critical aircraft components in the commercial and defense markets — covering structural components, engine and airframe accessories, interior refurbishment and wheels and brakes, plus proprietary DER repairs and PMA parts. The business operated across five primary locations with over 700 employees and was projected to generate about $280 million of revenue and $55 million of EBITDA (20% margin) in its fiscal year ending March 31, 2024.

Meaningfully scaled AAR's repair capabilities, expanded its footprint (notably in APAC), broadened its customer base, and was expected to be accretive to revenue growth and Adjusted EPS in the first full fiscal year with about $10 million of run-rate cost synergies.

Effective purchase-price multiple of about 11.7x FY2024 EBITDA (9.9x including run-rate synergies), including an estimated ~$80 million present value of tax benefits. Expected run-rate cost synergies of approximately $10 million. Repair & Engineering segment (Component Services)

Advisory firms were not disclosed for this transaction.