AAR sells landing gear business to GA Telesis
December 24, 2024
Florida-based Allen Aircraft Radio (AAR) Corp has confirmed that it is divesting its Landing Gear Overhaul business to GA Telesis in a deal valued at US$51 million.
Part of AAR’s strategic plan to optimise its portfolio by investing in core functions, the divestiture will “increase operating margins, improve cash flow and enable the business to re-allocate resources to drive further growth,” according to John Holmes, AAR’s chairman, president and CEO.
The transaction, which is expected to be finalised in early 2025, will see GA Telesis take over AAR’s Miami-based landing gear overhaul business and part of its repair and engineering facility catering for commercial and government customers.
The transaction also includes GA Telesis taking on a subcontractor role for AAR’s current maintenance services for the US Air Force Landing Gear Performance Based Logistics contract. AAR will remain the prime contractor.
“We are confident GA Telesis will continue to deliver excellent service to the Landing Gear customers,” concluded Holmes.
