AAR CORP. has agreed to divest its Landing Gear Overhaul business to GA Telesis for $51 million to optimize its portfolio and focus on core operations, expected to enhance margins and cash flow.

Information on the Target

AAR CORP., headquartered in Wood Dale, Illinois, is a prominent provider of aviation services tailored for both commercial and government operators, MROs, and OEMs. Recently, the company entered into a definitive agreement to divest its Landing Gear Overhaul business to GA Telesis for a transaction valued at $51 million. This business, based in Miami, Florida, is part of AAR’s Repair & Engineering segment and offers comprehensive landing gear maintenance, repair, and overhaul services. Following the divestiture, AAR will continue to serve as the prime contractor for the United States Air Force's Landing Gear Performance Based Logistics contract, while GA Telesis will act as a subcontractor for ongoing maintenance services.

According to AAR’s leadership, this divestiture aligns with the company's strategic plan to enhance its portfolio. The goal is to allocate resources more effectively towards core functions that will promote growth and increase margin expansion. This move is set to enhance operating margins and cash flow for AAR, allowing for reinvestment into essential business areas.

Industry Overview in the Target’s Specific Country

The aerospace industry in the United States is a global leader, characterized by a diverse range of services and innovation. With a market significantly supported by both commercial and government contracts, the sector p