AAR Droops On Linking With GA

(MENAFN- Baystreet) AAR CORP. (NYSE: AIR) shares were off slightly Friday, as the leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced today that it has entered into a definitive agreement to divest its Landing Gear Overhaul business to GA Telesis. The transaction is valued at $51 million and is expected to close in the first quarter of the 2025 calendar year, subject to customary and regulatory closing conditions. The divestiture will be immediately accretive to margins and earnings.

The divestiture is part of AAR's strategic plan to optimize its portfolio by investing in core functions that will accelerate its targeted growth and margin expansion initiatives.

The transaction with GA Telesis includes AAR's Miami, Florida, based Landing Gear Overhaul business, part of the Company's Repair & Engineering segment, that provides full-service landing gear maintenance, repair, and overhaul services to commercial and government customers. AAR will remain prime contractor for the United States Air Force Landing Gear Performance Based Logistics contract, and the current maintenance services will be continued by GA Telesis as a subcontractor.

"This transaction will increase our operating margins, improve our cash flow and enable us to re-allocate resources to drive further growth in our core businesses," said John M. Holmes, AAR's Chairman, President and CEO

AAR shares let go of 13 cents to $60.47.

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