MRO & Manufacturing
VSE Corporation to Acquire Precision Aviation Group in $2 Billion Deal
VSE Corporation agrees to acquire Precision Aviation Group for $2.025 billion, expanding its aviation aftermarket and MRO capabilities.
This article is based on an official press release from VSE Corporation.
VSE Corporation (NASDAQ: VSEC) has announced a definitive agreement to acquire Precision Aviation Group (PAG) for approximately $2.025 billion. The transaction, described by the company as “transformational,” aims to solidify VSE’s position as a leading independent provider of aviation aftermarket distribution and repair services. The deal is expected to close in the second quarter of 2026, subject to customary regulatory approvals.
According to the official announcement, the acquisitions will significantly expand VSE’s maintenance, repair, and overhaul (MRO) capabilities. By integrating PAG’s network, VSE projects an increase in its pro forma 2025 aviation revenue by approximately 50%, adding roughly $615 million in annualized revenue.
The total consideration for the acquisition is valued at approximately $2.025 billion. VSE Corporation outlined the financial structure of the deal, which includes a mix of cash and equity:
To fund the cash portion of the transaction, VSE has secured a fully committed bridge facility. The company also noted that recent equity offerings have helped strengthen its balance sheet in preparation for strategic moves of this magnitude. GenNx360 Capital Partners will retain a minority equity stake in the combined entity following the close of the transaction.
VSE Corporation views this acquisition as a critical step in its multi-year strategy to become a pure-play aviation aftermarket leader. The combination of VSE and PAG will create a global network comprising approximately 60 locations. The company expects the deal to be immediately accretive to margins, projecting that the high-margin nature of PAG’s business will drive VSE’s consolidated Adjusted EBITDA margin above 20% in the coming years.
John Cuomo, President and CEO of VSE Corporation, highlighted the strategic importance of the deal in a statement:
“This acquisition represents a pivotal moment for VSE and a major milestone in our strategy to build a scaled, differentiated, higher-margin aviation aftermarket platform.”
The acquisition brings deep technical expertise in avionics, components, and accessories to VSE, complementing its existing engine support and distribution services. VSE targets over $15 million in annualized run-rate synergies, which it plans to achieve through cross-selling opportunities, insourcing repairs, and operational efficiencies.
Headquartered in Atlanta, Georgia, Precision Aviation Group is a prominent provider of MRO services and supply chain solutions for mission-critical aircraft. The company operates 29 repair stations and distribution facilities worldwide. PAG serves a diverse range of sectors, including commercial aviation, business and general aviation (B&GA), rotorcraft, and defense. Pratik Rajeevan of GenNx360 Capital Partners expressed confidence in the future of the combined platform:
“Our significant equity rollover reflects our conviction in PAG’s momentum and in VSE’s ability to scale the platform.”
This acquisition arrives at a time when the aviation aftermarket is experiencing heightened demand due to global fleet dynamics. With delays in new aircraft deliveries from major manufacturers, airlines are operating older aircraft for longer periods. This “aging fleet” trend directly benefits MRO providers like PAG and VSE, as older airframes require more frequent maintenance and parts replacement.
Furthermore, ongoing supply chain constraints have placed a premium on available inventory. By combining VSE’s distribution capabilities with PAG’s repair stations, the merged entity is likely positioning itself to better control the supply chain and capture value from the current market scarcity. However, the significant cash component of the deal will increase VSE’s leverage, making the rapid realization of the projected $15 million in synergies and strong cash flow generation critical for de-leveraging in the post-acquisition period.
Prior to this announcement, VSE reported strong financial performance, with Q3 2025 revenue reaching $283 million, a 39% increase year-over-year. The company’s full-year 2025 revenue guidance was set between $1.1 billion and $1.15 billion. Following the integration of PAG, VSE anticipates a temporary spike in net leverage but targets a long-term ratio of 3.0x to 3.5x, intending to use free cash flow to reduce debt rapidly.
Sources: VSE Corporation (Business Wire)
VSE Corporation to Acquire Precision Aviation Group in $2 Billion Deal
Transaction Structure and Financing
Strategic Rationale and Market Impact
Profile of Precision Aviation Group
AirPro News Analysis
Financial Outlook
Photo Credit: VSE Corporation
MRO & Manufacturing
C.E. Precision Assemblies Expands Aerospace Manufacturing in Chandler AZ
C.E. Precision Assemblies expands to a 39,757 sq ft facility in Chandler, Arizona, adding jobs and scaling aerospace manufacturing under Amphenol.
This article is based on an official press release from the City of Chandler.
C.E. Precision Assemblies (CEPA), a manufacturers specializing in cable assemblies and wire harnesses for the aerospace and defense sectors, has announced a significant expansion of its operations in Chandler, Arizona. Now operating as an Amphenol company following recent acquisitions, CEPA has secured a new facility that will nearly quadruple its current operational footprint.
According to a press release issued by the City of Chandler, the company has signed a lease for a 39,757-square-foot facility located at 7155 W. Detroit St. within the West Chandler Employment Corridor. This move marks a major transition from their current location on West Frye Road, signaling a robust period of growth for the 35-year-old manufacturer.
The expansion is expected to generate between 20 and 30 new jobs over the next two years as the company scales its manufacturing lines to meet increasing demand from defense and aerospace clients. The move-in date is currently projected for May 2026.
The new facility represents a strategic upgrade in both size and capability. The 39,757-square-foot space is a modern flex-industrial building constructed in 2019. Unlike older industrial stock, this facility features 100 percent air-conditioning, a critical requirement for precision manufacturing in the Arizona climate, along with high ceilings and improved loading capabilities.
Greg Brinjak, Site Director for CEPA, emphasized the company’s long-standing relationship with the region in a statement provided by the city:
“We have been in Chandler for 35 years and need a larger facility to meet increased demand for our products. Continuing to grow in Chandler is important to us, and we are glad to have found a long-term home here.”
Real estate services for the transaction were managed by CBRE, representing CEPA, and Cushman & Wakefield, representing the landlord. The location places CEPA in the heart of the West Chandler Employment Corridor, a hub that already hosts major industry players such as Intel, Northrop Grumman, and Avnet.
CEPA’s expansion occurs against the backdrop of significant changes in its corporate ownership. Founded in 1986, the firm was acquired by Trexon in October 2023. Subsequently, in November 2025, Amphenol Corporation (NYSE: APH), a Fortune 500 leader in interconnect systems, completed the acquisition of Trexon. Consequently, CEPA now operates under the Amphenol umbrella, leveraging the global resources of one of the world’s largest interconnect manufacturers. Local officials have welcomed the reinvestment in the local economy. Chandler Mayor Kevin Hartke noted the significance of retaining established manufacturers:
“We congratulate C.E. Precision Assemblies as they expand their footprint in Chandler. We greatly appreciate their investment in our community and look forward to supporting their continued success.”
The expansion of C.E. Precision Assemblies highlights a broader trend of consolidation and scaling within the aerospace supply chain. As major defense primes ramp up production for missile systems, UAVs, and radar platforms, Tier 2 and Tier 3 suppliers like CEPA are under pressure to increase throughput.
The acquisition by Amphenol likely provided the capital confidence required to commit to a facility four times the size of the previous one. For the City of Chandler, retaining a legacy manufacturer that has now been absorbed into a Fortune 500 structure validates the West Chandler Employment Corridor’s status as a critical node in the U.S. defense industrial base.
Beyond the physical expansion, the move reinforces the local labor market. The projected addition of 20 to 30 new employees adds to the region’s dense concentration of engineering and technical talent. Micah Miranda, Chandler’s Economic Development Director, highlighted the trust implied by the lease signing:
“When a company like CEPA chooses to reinvest in Chandler, it shows a tremendous amount of trust. They know Chandler is a stable, pro-business community that will be a partner in their growth.”
The facility’s location offers immediate access to Interstate 10 and the Loop 202 freeway, facilitating logistics for the transport of complex wire harnesses and RF/microwave cable assemblies essential to modern aerospace applications.
Sources:
C.E. Precision Assemblies Expands Aerospace Manufacturing Footprint in Chandler, Arizona
Operational Expansion Details
Corporate Structure and Market Context
AirPro News Analysis
Economic Impact
Photo Credit: City of Chandler
MRO & Manufacturing
Boeing Ratifies New Labor Deal with Wichita White-Collar Workers
Boeing secures a 5-year labor agreement with 1,600 Wichita white-collar workers, enhancing wages, benefits, and retirement plans.
This article summarizes reporting by Reuters and publicly available elements.
Boeing has successfully ratified a new labor agreement with a critical unit of white-collar workers at its Wichita, Kansas facility, marking a significant step in the reintegration of Spirit AeroSystems. According to reporting by Reuters, the deal covers approximately 1,600 employees represented by the Society of Professional Engineering Employees in Aerospace (SPEEA).
The agreement, ratified on January 30, 2026, formally brings these workers back under Boeing’s employment structure following the company’s $4.7 billion re-acquisition of Spirit AeroSystems in December 2025. The union confirmed that the contract was approved by a wide margin, with 85.8% of voting members casting ballots in favor of the proposal.
This development is viewed as a stabilizing win for Boeing as it navigates a complex “turnaround year” in 2026. By securing a long-term contract with this technical unit, which includes supply chain agents and quality analysts, Boeing aims to avoid the labor friction that characterized much of 2024 and focus on ramping up production rates.
The ratified contract, which spans nearly five years and expires in late 2030, offers significant financial improvements over the previous terms these workers held under Spirit AeroSystems. Data released by SPEEA and analyzed by Leeham News highlights a shift from variable, market-based raises to guaranteed increases.
Under the new terms, the Wichita Technical & Professional Unit (WTPU) will see a 20% increase in salary pools over the life of the contract. Notably, the deal introduces a guaranteed minimum annual raise of 2% for every employee, a protection that did not exist in their prior contracts. Immediate financial benefits include:
One of the most substantial changes involves retirement benefits. Starting in 2027, Boeing will provide a 100% 401(k) match on the first 10% of employee contributions. This is a significant enhancement compared to standard market rates. Additionally, the transition to Boeing’s medical and dental plans in 2027 is projected by the union to save the average employee approximately $3,100 annually in premiums.
“The average WTPU-represented worker will be making more than $117,000 a year when this contract is done in 2030… We will be joining other unions and Boeing non-union employees in enjoying the Boeing benefits.”
, James Hatfield, Chair of the WTPU Negotiation Team (via SPEEA statement)
The reintegration of the WTPU is more than a standard labor negotiation; it is a pivotal component of Boeing’s broader strategy to stabilize its supply chain. These workers, who manage logistics, quality control, and business operations, are essential to the factory floor’s daily function. We view this agreement as a critical “first test” of Boeing’s ability to merge two distinct corporate cultures following the Spirit AeroSystems acquisition. The swift ratification suggests that Boeing management is prioritizing labor peace and is willing to pay a premium to secure it. Following the costly strike by 33,000 IAM machinists in late 2024, which resulted in a 38% wage hike, Boeing appears eager to prevent further disruptions.
The generous terms, particularly the 10% 401(k) match, reflect the new leverage labor unions currently hold in the aerospace sector. For Boeing, the cost of the contract is likely outweighed by the strategic necessity of a unified, motivated workforce as the company attempts to fix quality control issues and certify the 777X. However, execution risks remain high as the company proceeds with the technical merger of operations throughout 2026.
Sources: Reuters, SPEEA Official Statements, Leeham News & Analysis, Boeing Press Release
Boeing Secures Labor Peace with Former Spirit AeroSystems White-Collar Unit
Core Terms of the New Agreement
Wage and Benefit Enhancements
Retirement and Healthcare
Strategic Context and Analysis
AirPro News Analysis
Frequently Asked Questions
Photo Credit: Peter Cziborra – Reuters
MRO & Manufacturing
Liebherr-Aerospace Launches REACH-Compliant Coating in Asia
Liebherr-Aerospace deploys a safer Trivalent Chromium coating process at its Singapore service center, with expansion to Shanghai in 2026.
This article is based on an official press release from Liebherr-Aerospace.
Liebherr-Aerospace has announced the successful industrialization of a new, environmentally sustainable coating process for aircraft heat transfer equipment at its Singapore service center. According to the company, this new method replaces traditional hazardous materials with a safer alternative that complies with stringent European Union regulations.
The aerospace manufacturers and MRO (Maintenance, Repair, and Overhaul) provider confirmed that the process, known as a Trivalent Chromium System (TCS) combined with a Post Application Conversion Sealer (PACS), is now operational in Singapore. Furthermore, the company plans to expand this capability to its facility in Shanghai, China, with implementation scheduled for the first quarter of 2026.
The core of this operational shift involves replacing Hexavalent Chromium (Cr6+), a standard corrosion inhibitor historically used in aerospace manufacturing but known for its toxicity and carcinogenic properties. In response to global regulatory pressures, particularly the EU’s REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulation, Liebherr has adopted a safer chemical alternative.
According to technical details released by the company, the new process utilizes Trivalent Chromium (Cr3+). While Cr3+ is significantly less toxic, it has historically struggled to match the corrosion resistance and “self-healing” properties of its hexavalent predecessor. To bridge this performance gap, Liebherr utilizes a Post Application Conversion Sealer (PACS), which reinforces the coating to meet the durability standards required for aerospace components.
Liebherr-Aerospace noted that this specific TCS and PACS process was first qualified and validated at its OEM facility in Toulouse, France. The transfer of this technology to the MRO network ensures that repairs performed in Asia meet the same original equipment standards as those in Europe.
For the Singapore deployment, the company collaborated with Applied Total Control (ATC), a long-term surface treatment partner. This collaboration allowed for the successful integration of the new coating line into the local MRO workflow.
The adoption of REACH-compliant processes in Asia is a strategic move to align Liebherr’s global service network with European standards. The Singapore facility, which serves as a hub for the Asia-Pacific region, recently celebrated completing its 5,000th heat transfer equipment repair. By establishing the process there first, the center acts as a training ground for the wider network. According to the press release, staff from Liebherr (China) Co., Ltd. in Shanghai have already undergone training in Singapore. This preparation is intended to facilitate a smooth rollout of the coating process at the Shanghai service center in Q1 2026. This expansion supports Liebherr’s strategy to provide “in-region” support for Chinese airlines, reducing the need to ship components back to Europe for compliant repairs.
“The integration of the REACH compliant TCS and the PACS coating process marks a significant step towards a more sustainable customer service… We comply with the regulations applicable in the EU and in the APAC region, which avoids regulatory risks and delays in aircraft operation.”
, Joël Cadaux, General Manager Aerospace at Liebherr-Singapore Pte Ltd.
The implementation of EU-centric regulations like REACH in Asian MRO facilities highlights the global nature of the aerospace supply chain. While REACH is technically a European regulation, European OEMs (such as Airbus) and global airlines often mandate compliance across their entire fleet to ensure uniformity and avoid legal complications.
By proactively upgrading facilities in Singapore and China, Liebherr mitigates the risk of “sunset dates”, regulatory deadlines after which the use of hexavalent chromium is prohibited without special authorization. This move likely positions Liebherr to capture maintenance contracts from carriers that prioritize environmental compliance and supply chain continuity, distinguishing them from competitors who may still rely on older, restricted chemical processes.
Liebherr-Aerospace Deploys REACH-Compliant Coating Process Across Asian Service Centers
Transitioning Away from Hexavalent Chromium
Validation and Partnerships
Regional Expansion Strategy
AirPro News Analysis
Frequently Asked Questions
Sources
Photo Credit: Liebherr-Aerospace
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