MRO & Manufacturing
AAR CORP. Acquires 65% Stake in MRO Holdings for $1.8B
AAR CORP. agrees to acquire a controlling interest in MRO Holdings, creating the largest heavy maintenance provider globally.
Aviation aftermarket services provider AAR CORP. has entered into a definitive agreement to acquire a 65% controlling interest in MRO Holdings for an equity value of approximately $1.8 billion. The transaction will create the largest heavy maintenance provider in the global aviation industry.
Announced in a company press release on September 28, 2026, the acquisition is based on an implied enterprise value of $4.0 billion for MRO Holdings. The deal is expected to close in February 2027, aligning with AAR’s fiscal third quarter, and represents a major expansion of the company’s integrated aftermarket platform.
Financial Structure and Stakeholder Equity
AAR expects to fund the transaction using $2.1 billion in new debt. This capital will cover the initial 65% interest and repay $1.3 billion of MRO Holdings’ existing borrowings.
The transaction structure includes issuing $780 million in equity, priced at $135 per share, to existing MRO Holdings shareholders. Current investors include private equity firm Bain Capital, Caoba Capital, and the family of MRO Holdings founder Roberto Kriete. Bain Capital will retain a residual position in the maintenance firm while taking an equity stake in AAR.
The funding strategy also incorporates $230 million in expected proceeds from a private investment in public equity (PIPE) offering led by The Pritzker Organization.
AAR holds options to acquire the remaining 35% ownership interest in MRO Holdings. A 5% stake is exercisable within six years of closing, while the final 30% is exercisable in three equal tranches on the second, third, and fourth anniversaries of the initial closing.
Operational Scale and Projected Synergies
MRO Holdings operates facilities across El Salvador, Mexico, Colombia, and the United States, employing approximately 10,000 professionals. The company manages 115 lines of airframe maintenance capacity and derives roughly 90% of its revenue from U.S. customers.
Once integrated, the combined entity expects to service nearly 3,000 aircraft annually. AAR Chairman, President and CEO John M. Holmes stated that heavy maintenance serves as a foundational element of the company’s platform, driving revenue to all other operational areas.
Financially, MRO Holdings is projected to generate $1.0 billion in sales and $285 million in adjusted EBITDA for calendar year 2026, representing a 27% adjusted EBITDA margin. The acquisition price reflects a 10.7x multiple on that forecasted EBITDA. AAR anticipates $75 million in run-rate cost synergies and expects $150 million in present value from transaction-related tax benefits.
AirPro News analysis
We view this acquisition as a definitive acceleration of AAR’s long-term aftermarket platform strategy. By securing a controlling interest in MRO Holdings, AAR is locking in massive, established heavy maintenance capacity across the Americas. This move follows AAR’s March 2024 acquisition of Triumph Group’s product support business, demonstrating a sustained aggressive posture toward market consolidation.
The heavy reliance of MRO Holdings on U.S. customers aligns perfectly with AAR’s domestic strength, while the nearshore footprint in Latin America provides cost-effective, high-volume airframe maintenance capacity. As airlines continue to operate older aircraft longer due to ongoing original equipment manufacturer (OEM) delivery delays, securing guaranteed heavy maintenance slots has become a critical operational priority. AAR is positioning itself to capture that sustained demand directly.
Sources: AAR CORP.
Photo Credit: AAR CORP.
MRO & Manufacturing
Werner Aero Acquires A319-100 in Third August 2026 Teardown Deal
Werner Aero acquires Airbus A319-100 MSN 2897 for teardown, its 16th airframe acquisition in 2026 through August.
Werner Aero has acquired an Airbus A319-100 for its aircraft teardown program, marking the aviation aftermarket supplier’s third airframe acquisition in August 2026.
The New Jersey-based company, a subsidiary of Sumitomo Corporation Group, announced the transaction in a September 17 press release, highlighting the continued expansion of its parts recovery and material reuse operations.
Fleet transition and teardown operations
The newly acquired narrowbody, identified as manufacturer serial number (MSN) 2897, was delivered to eCube Solutions at its facility in St Athan, Wales. The aircraft will be dismantled to support Werner Aero’s global spare parts inventory.
This transaction brings the company’s total aircraft acquisitions for the year to 16 through the end of August. Of those, 14 have been allocated specifically to the teardown program, which focuses on recovering high-demand components for active commercial fleets.
Aftermarket strategy
Werner Aero specializes in end-of-life asset management and spare parts provisioning for several major commercial aircraft families. The company’s teardown portfolio primarily targets the Airbus A320 family, Boeing 737 Next Generation, Embraer E-Jet, and Bombardier CRJ platforms.
AirPro News analysis
We view this steady pace of acquisitions as a direct reflection of the current commercial aviation aftermarket. With global supply chain constraints continuing to impact new aircraft deliveries and original equipment manufacturer (OEM) spare parts availability, operators are increasingly reliant on the used serviceable material (USM) market to keep existing fleets flying. Werner Aero’s acquisition of 16 airframes in just eight months underscores the high demand for mature narrowbody components, particularly for ubiquitous platforms like the A320 family.
Sources: Werner Aero
Photo Credit: Werner Aero
MRO & Manufacturing
Eaton Secures FAA Part 145 Certification for Malaysia MRO JV
Eaton’s joint venture with SIAEC in Malaysia earns FAA Part 145 certification, expanding regional MRO capabilities across Asia-Pacific.
Intelligent power management company Eaton announced on September 23, 2026, the expansion of its aerospace aftermarket operations in the Asia-Pacific region, highlighted by a new Federal Aviation Administration (FAA) Part 145 Repair Station certification for its joint venture in Malaysia and a new engineering investment in Singapore.
In a press release issued during the MRO Asia-Pacific 2026 event, Eaton detailed the dual initiatives aimed at strengthening its regional maintenance, repair, and overhaul (MRO) footprint. The FAA certification authorizes Eaton Aero Services (EAS) to perform approved maintenance and issue airworthiness release certificates, while the Singapore expansion focuses on product innovation and engineering solutions.
Regulatory approval expands Malaysian joint venture capabilities
Eaton holds a 51 percent equity stake in EAS, with SIA Engineering Company Limited (SIAEC) holding the remaining 49 percent. The joint venture was officially incorporated in June 2024 and operates out of a facility in Shah Alam, Selangor, Malaysia. The partnership was established to inspect, test, repair, and overhaul Eaton-manufactured aircraft components.
The newly announced FAA Part 145 certification allows EAS to conduct FAA-approved MRO services on components installed on airframe and engine fuel systems, as well as hydraulic systems. This approval adds to the facility’s existing regulatory certifications from the Civil Aviation Authority of Malaysia (CAAM) and the Civil Aviation Authority of Singapore (CAAS).
Singapore engineering and innovation investment
Alongside the Malaysian MRO developments, Eaton confirmed an expansion of its aerospace engineering capabilities in Singapore. This initiative is supported by the Singapore Economic Development Board (EDB).
The Singapore investment will target aerospace product innovation, engineering solutions, and MRO process improvements. It will also support retrofit, modification, and upgrade (RMU) programs for operators in the region. Ian Lam, managing director of Eaton’s Aerospace Group for the Asia-Pacific region, stated that the EDB-supported investment is strengthening the company’s engineering capabilities and enabling more responsive customer solutions.
“Together with EAS’s FAA certification, these developments position Eaton to serve customers with greater speed, flexibility and proximity while strengthening our regional aftermarket presence,” Lam said.
AirPro News analysis
The dual announcements from Eaton highlight a broader industry trend of original equipment manufacturers (OEMs) localizing their aftermarket support networks in the Asia-Pacific market. By securing FAA Part 145 certification for the EAS joint venture, Eaton and SIAEC can now capture a wider segment of the regional MRO market, particularly for operators requiring FAA-certified component releases. The parallel investment in Singapore engineering capabilities suggests Eaton is positioning itself not just for component repair, but for higher-margin retrofit and modification programs as airlines seek to extend the operational life of existing fleets.
Photo Credit: Eaton
MRO & Manufacturing
StandardAero and GMR Aero Technic Partner for LEAP MRO in India
StandardAero and GMR Aero Technic sign a supplier agreement for on-wing CFM LEAP and CFM56 engine support across India.
StandardAero (NYSE: SARO) and GMR Aero Technic have signed a Supplier Service Agreement to provide localized on-wing support for CFM International LEAP and CFM56 engines operating in India. The partnership, announced on September 22, 2026, aims to reduce aircraft downtime for domestic operators by establishing specialized engine maintenance capabilities closer to their operating bases.
In a press release issued on September 22, 2026, StandardAero confirmed the agreement targets the CFM International CFM56-7B, LEAP-1A, and LEAP-1B engine platforms. These powerplants are the primary engines for the Airbus A320neo and Boeing 737 MAX families, which dominate the narrowbody fleets of Indian carriers.
Addressing India’s growing narrowbody fleet
The Indian commercial aviation market represents one of the fastest-growing sectors globally, characterized by a massive backlog of narrowbody aircraft. According to StandardAero, operators in India currently have approximately 1,000 LEAP-1A and LEAP-1B powerplants in service, with an additional 3,200 engines on order. The legacy CFM56-7B, which powers the Boeing 737NG family, also maintains a significant footprint with more than 100 engines still active in the country.
GMR Aero Technic, a division of GMR Air Cargo and Aerospace Engineering Ltd, provides line maintenance services at 12 airports across India and one in Nepal. The company serves over 60 customers and Airlines. By integrating StandardAero’s global engine aftermarket expertise with GMR Aero Technic’s regional infrastructure, the companies intend to create a responsive support network for these fleets.
Ashok Gopinath, President and Accountable Manager at GMR Aero Technic, stated the partnerships marks an important milestone in developing advanced engine support capabilities for the Asia-Pacific (APAC) region. He noted the collaboration aims to deliver greater value to airlines by combining local infrastructure with global expertise.
StandardAero’s expanding Asia-Pacific footprint
The agreement in India follows a similar regional strategy executed by StandardAero in late 2025. In November 2025, the maintenance, repair, and overhaul (MRO) provider signed a Memorandum of Understanding with GMF AeroAsia to provide on-wing support services for CFM56-7B engines in Indonesia.
Rebecca Lane, Senior Vice President of Global Sales at StandardAero, highlighted this expansion as part of a broader strategy to localize maintenance access.
“Coming less than a year after our agreement with GMF AeroAsia in Indonesia, this new partnership with GMR Aero Technic highlights StandardAero’s commitment to providing operators with local support on a global scale,” Lane said.
StandardAero has steadily built its LEAP maintenance capabilities since signing the first non-airline CFM Branded Service Agreement in the Americas in March 2023. The company operates an 810,000-square-foot facility in San Antonio, Texas, which serves as a CFM LEAP Premier MRO provider. Through its Component Repair Services network, StandardAero has industrialized nearly 500 component repairs for the LEAP-1A and LEAP-1B engines. In February 2026, the San Antonio facility completed its first performance restoration shop visit for a LEAP engine.
AirPro News analysis
We view this partnership as a strategic necessity for both entities given the sheer volume of LEAP-powered aircraft entering the Indian market. With over 3,200 LEAP engines on order by Indian operators, the demand for localized, rapid-response maintenance will outpace the capacity of traditional, centralized overhaul facilities. On-wing support allows technicians to perform targeted repairs and inspections without removing the engine from the aircraft, significantly reducing out-of-service time. For StandardAero, partnering with established regional players like GMR Aero Technic and GMF AeroAsia provides immediate access to local flight lines without the capital expenditure of building new facilities from scratch. This localized approach will be critical for airlines attempting to maintain schedule reliability amid global engine supply chain pressures.
Sources: StandardAero
Photo Credit: StandardAero
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