AAR to acquire Triumph Group

AAR CORP. has entered into a definitive agreement with Triumph Group to purchase Triumph Product Support for US$725 million in cash. As part of the transaction, AAR expects to receive estimated tax benefits with a present value of approximately US$80 million. Including the estimated tax benefits, the effective purchase price multiple is expected to be 11.7x FY2024 EBITDA and 9.9x including estimated run-rate synergies of US$10 million.

Triumph Product Support is a leading global provider of specialised maintenance, repair, and overhaul capabilities for critical aircraft components in the commercial and defence markets. The company provides MRO services for structural components, engine and airframe accessories, interior refurbishment and wheels and brakes. Additionally, Triumph Product Support designs proprietary designated engineering representative (DER) repairs and parts manufacturer approval (PMA) parts.

Triumph Product Support services both the commercial and military aftermarkets across five primary locations, has a highly skilled workforce of over 700 employees. The business is projected to generate approximately US$280 million of revenue and US$55 million of EBITDA, representing an EBITDA margin of 20%, in its fiscal year ending March 31, 2024.

AAR