VSE Corporation closed a $350 million cash acquisition of GenNx/AeroRepair IntermediateCo Inc., the parent of Aero 3, on December 23, 2025. The deal, funded with proceeds from VSE’s October 2025 public offering of common stock, adds a diversified global maintenance, repair and overhaul (MRO) business focused on commercial wheel and brake systems to VSE’s portfolio.
Aero 3 operates nine MRO facilities worldwide and generates roughly $120 million in revenue with adjusted EBITDA margins above 20%. By integrating Aero 3, VSE will now operate twelve such facilities, expanding its service reach and creating cross‑selling opportunities with its existing distribution and engine‑MRO capabilities. The acquisition is expected to lift VSE’s consolidated adjusted EBITDA margin by more than 50 basis points, reinforcing the company’s high‑margin aftermarket model.
CEO John Cuomo said the transaction “marks a meaningful step forward for VSE as we continue to expand our aviation aftermarket distribution and repair capabilities and deepen our OEM partnerships.” The move aligns with VSE’s broader strategy of divesting non‑core assets and focusing on the high‑growth, high‑margin wheel‑and‑brake aftermarket segment, a trend driven by aging fleets and increasing maintenance demands.
Financially, the acquisition is supported by a strong Q3 2025 earnings beat, where VSE reported revenue of $283 million versus a consensus of $276.67 million and EPS of $0.99 against an estimate of $0.84. The earnings beat was largely driven by disciplined cost management and a favorable mix shift toward higher‑margin MRO services. The company’s stock had already surged nearly 89% year‑to‑date, reflecting investor confidence in its strategic transformation.
The transaction also underscores VSE’s commitment to inorganic growth. The October 2025 stock offering raised sufficient proceeds to fund the purchase, and the working‑capital adjustment clause will be finalized in the coming months. Management anticipates that the integration of Aero 3 will accelerate revenue growth and enhance margin expansion by leveraging VSE’s proprietary repair processes and global distribution network.
The acquisition positions VSE to capture a larger share of the growing wheel‑and‑brake aftermarket, reinforcing its pure‑play aviation aftermarket identity and providing a platform for future acquisitions in complementary service segments.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.