AAR Corp (NYSE: AIR) announced a definitive agreement to acquire Aircraft Reconfig Technologies (ART), a Greensboro‑based aircraft interiors engineering firm, for $35 million in all‑cash consideration. The deal, which is expected to close in the fourth quarter of fiscal year 2026, expands AAR’s Repair & Engineering segment by adding a company that specializes in passenger aircraft reconfiguration, project management, engineering, and certification services.
ART holds FAA Part 21 and Part 183 Organization Designation Authority (ODA), enabling it to certify design changes and issue parts manufacturer approvals (PMAs) and supplemental type certificates (STCs). By bringing these capabilities in‑house, AAR will reduce its reliance on external design and certification partners, accelerating delivery of reconfiguration work for commercial and government customers and improving margin potential.
The acquisition aligns with AAR’s broader M&A‑driven growth strategy, which has included the 2024 purchase of Triumph Group’s Product Support business and the 2023 acquisition of aviation maintenance software provider Trax. Management views the deal as a strategic move to deepen AAR’s high‑margin Repair & Engineering offering and to support its goal of becoming a fully integrated aftermarket solutions provider. "This acquisition strengthens our engineering and certification footprint and positions us to capture more of the growing interior reconfiguration market," said John M. Holmes, AAR’s Chairman, President and CEO.
Financially, the transaction is expected to be accretive to AAR’s margins and earnings once integration is complete. While the deal does not include a detailed financial projection, the $35 million price tag represents a modest outlay relative to AAR’s $3.2 billion market capitalization and strong liquidity profile, with a current ratio of 2.91 and a debt‑to‑capital ratio of 45%. The addition of ART’s approximately 100 employees and its IP portfolio of patents, PMAs and STCs is projected to enhance AAR’s service mix and pricing power in the high‑margin Repair & Engineering segment.
The acquisition also provides a strategic advantage in a market where airlines are increasingly investing in cabin upgrades to improve passenger experience and operational efficiency. By internalizing certification and design capabilities, AAR can offer faster turnaround times and lower costs, differentiating itself from competitors that rely on third‑party certifiers. This capability is particularly valuable as airlines seek to modernize fleets amid regulatory changes and evolving customer expectations.
Tom Hoferer, AAR’s Senior Vice President of Repair & Engineering, added, "Bringing ART’s ODA in‑house gives us a competitive edge in delivering end‑to‑end reconfiguration solutions, from design to certification, and opens new revenue streams in the growing cabin upgrade market."
The deal underscores AAR’s commitment to expanding its high‑margin service portfolio through targeted acquisitions, reinforcing its position as a leading independent MRO provider in North America and positioning the company for continued growth in the aftermarket sector.
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