Aviation services company AAR has completed the divestiture of its non-core landing gear overhaul business to GA Telesis for a value of $51 million.
On December 20, 2024, AAR announced it had entered into an agreement to divest the business as part of the company’s strategic plan to optimise its portfolio by investing in core functions that will accelerate its targeted growth and margin expansion initiatives.
“The divestiture of our landing gear overhaul business is another step to enhance our portfolio and focus on growing our core aviation aftermarket services,” said John Holmes, AAR’s chairman, president and CEO.
The landing gear business is based in Miami and is part of the company's repair & engineering segment. 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.
In December, GA Telesis said the transaction will “significantly expand" its workforce and boost its service provision capabilities for aircraft, including Airbus, Boeing, Bombardier, and Embraer platforms.
HCIBC Capital Markets served as AAR's financial advisor and Jones Day served as AAR's legal advisor in the transaction.