MRO & Manufacturing
AAR to Acquire Aircraft Reconfig Technologies for $35 Million Expansion
AAR CORP. will acquire Aircraft Reconfig Technologies for $35 million, boosting engineering and in-house certification in aircraft modifications.
AAR CORP. (NYSE: AIR), a major provider of aviation services to commercial and government operators, has announced a definitive agreement to acquire Aircraft Reconfig Technologies (ART) from ZIM Aircraft Cabin Solutions. The all-cash transaction is valued at $35 million and is expected to close in the fourth quarter of AAR’s Fiscal Year 2026, subject to customary regulatory approvals.
The Acquisitions represents a strategic move by the Wood Dale, Illinois-based company to vertically integrate its repair and engineering capabilities. By purchasing ART, AAR gains significant in-house authority to design, engineer, and certify aircraft modifications, reducing reliance on external partners for complex cabin retrofits.
According to the company’s announcement, the deal is designed to be accretive to both margins and earnings. The primary asset in the transaction is ART’s status as an FAA Organization Designation Authorization (ODA) holder. This designation allows the engineering firm to issue Supplemental Type Certificates (STCs) and certify its own designs, a critical bottleneck in the aviation modification industry.
ART, based in Greensboro, North Carolina, employs approximately 100 people and specializes in aircraft interior engineering. The firm was previously a division of HAECO Cabin Solutions before being acquired by ZIM in 2023. For ZIM, the divestiture allows the company to focus on its core business of manufacturing aircraft seats, while AAR absorbs the service-heavy engineering unit to bolster its Maintenance, Repair, and Overhaul (MRO) offerings.
AAR executives emphasized that the acquisition is about moving up the value chain to offer proprietary solutions rather than just labor.
“This acquisition will elevate AAR’s engineering and in-house certification services to drive proprietary solutions as part of our broader MRO offering.”
, John M. Holmes, Chairman, President & CEO of AAR
Tom Hoferer, Senior Vice President of Repair & Engineering at AAR, noted that the addition of ART allows the company to capture a larger share of the modification market.
“This acquisition will add incremental engineering capabilities that will further differentiate AAR and enable us to expand our total accessible market.”
, Tom Hoferer, Senior VP of Repair & Engineering, AAR
The timing of this acquisition aligns with broader trends in the global aviation market. The industry is currently experiencing what analysts call an “MRO Super Cycle.” Due to significant Delivery delays of new aircraft from major Manufacturers like Boeing and Airbus, airlines are forced to fly older aircraft longer than anticipated. To keep these aging fleets competitive and comfortable for passengers, carriers are investing heavily in cabin refurbishment and densification projects.
In this constrained environment, speed is a competitive advantage. By acquiring ART and its FAA ODA status, AAR effectively buys the ability to approve its own engineering work. This vertical integration allows the company to offer a “one-stop-shop” for interior retrofits, handling everything from the initial design to the final certification and installation. This capability is particularly valuable when supply chain shortages require MROs to engineer custom repair solutions rather than waiting for OEM parts.
For AAR, this moves the company beyond standard repair work into higher-margin engineering services, allowing them to develop and own the intellectual property for specific modification schemes.
AAR to Acquire Aircraft Reconfig Technologies for $35 Million, Boosting Engineering Authority
Strategic Expansion of Engineering Capabilities
Executive Commentary
AirPro News Analysis: The “MRO Super Cycle”
Transaction Details
Sources
Photo Credit: Aircraft Reconfig Technologies – Montage