Aviation services company AAR has completed its acquisition of Triumph Group's product support business, which is a global provider of MRO services in the commercial and defence markets. It has also amended its existing revolving credit facility, upsizing it from $620 million to $825 million.
AAR had announced in December last year that it had entered into a definitive agreement to acquire the product support business for $725 million in cash. Triumph said the net after-tax proceeds would be around $700 million and would be primarily used to reduce its debt.
""By strengthening our balance sheet and focusing on our OEM component, spares and IP-based aftermarket business, Triumph will further improve its capacity to win and expects to profitably grow in the expanding markets we serve,"" said Triumph chairman, president and CEO Dan Crowley.
The transaction was financed with proceeds from
AAR's $550 million notes offering and borrowings under its amended revolving credit facility.
""The completion of this acquisition scales AAR's repair capabilities, expands our footprint in the APAC region, and enhances our ability to serve our global customers,"" said AAR chairman, president and CEO John M. Holmes.
AAR said it is welcoming over 700 team members from the product support business to its team.
