AAR Acquires Aircraft Reconfig Technologies to Boost Growth and Expand Engineering Capabilities

AAR Corporation Expands Capabilities through Acquisition of Aircraft Reconfig Technologies

AAR CORP. (NYSE: AIR), a prominent provider in the aviation services sector, has recently made headlines with its announcement regarding the acquisition of Aircraft Reconfig Technologies (ART), a firm known for its expertise in aircraft interiors engineering. This strategic move is intended to increase AAR’s engineering and certification capabilities, solidifying its position as a leader among independent maintenance, repair, and overhaul (MRO) service providers in North America.

Details of the Acquisition

The acquisition, valued at $35 million, is an all-cash transaction that comes with customary adjustments and is part of AAR’s broader growth strategy through mergers and acquisitions (M&A). As part of the deal, AAR will integrate ART's offerings, which include project management, engineering, and certification services specifically aimed at aircraft interior reconfigurations for global airlines. The transaction is expected to finalize in the fourth quarter of AAR's Fiscal Year 2026, although it is subject to standard closing conditions and regulatory approvals.

Founded in 1990 and based in Greensboro, North Carolina, ART boasts a strong reputation for delivering high-quality reconfiguration solutions. The company operates as an FAA Part 21 and 183 Organization Designation Authorization (ODA) holder, which means it possesses significant qualifications enabling it to manage and certify interior reconfigurations independently.

Enhancing AAR’s Capabilities

The incorporation of ART into AAR's Repair Engineering segment is projected to significantly broaden the company's design capabilities, allowing them to tackle more complex aircraft modifications while reducing dependence on third-party certification avenues. This self-sufficiency in design certification will ultimately enhance AAR's value proposition to its customers and unlock additional revenue streams.

John M. Holmes, Chairman, President, and CEO of AAR, expressed his enthusiasm for this acquisition by stating, "AAR is excited to announce our agreement to acquire Aircraft Reconfig Technologies, a company with a strong reputation for high-quality reconfiguration solutions. M&A is a key element of our continued growth strategy. This acquisition will elevate AAR’s engineering and in-house certification services to drive proprietary solutions as part of our broader MRO offering. We look forward to welcoming the skilled team at Aircraft Reconfig Technologies to AAR."

Perspectives on Growth

Tom Hoferer, Senior Vice President of Repair Engineering at AAR, added, "This acquisition will add incremental engineering capabilities that further differentiate AAR, enabling us to expand our total accessible market. By leveraging Aircraft Reconfig Technologies' qualifications with AAR’s established leadership in MRO, we can bring certification for our engineering solutions in-house, enhancing our offerings to customers and creating opportunities for AAR to pursue additional work."

With this acquisition, AAR not only aims to enhance its service capabilities, but also looks to establish a competitive edge in the market, reinforcing its commitment to quality and innovation within the aviation industry.

Background on AAR CORP.

AAR operates on a global scale, providing aerospace and defense aftermarket solutions with a footprint in over 20 countries. The Chicago-based company serves various sectors, supporting both commercial and government customers through segments including Parts Supply, Repair Engineering, Integrated Solutions, and Expeditionary Services. As AAR continues to evolve through strategic initiatives like the acquisition of ART, it aims to deliver unmatched service and solutions that meet the changing needs of the aviation market.

For further details about AAR and its operations, visit aarcorp.com.

The acquisition of Aircraft Reconfig Technologies is a testament to AAR's commitment to maintaining a strong competitive stance in the aviation services market while further enhancing the quality and range of its engineering offerings. As AAR gears up for this integration, the industry watches closely for the innovations that may arise from this strategic expansion.