AAR Purchases HAECO Americas, Expanding Its Maintenance Capacity

AAR Corp. has acquired HAECO Americas for $78 million in an all-cash transaction, which significantly expands its heavy maintenance capacity in the U.S. at a time when slots are in high demand.

AAR says the price represents a “high single-digit multiple of the last 12 months of EBITDA.”

As part of the deal, “We have secured agreements with key customers, totaling over $850 million in sales over a multi-year period,” says John Holmes, AAR’s chairman, president and CEO.

HAECO Americas operates five hangars in Greensboro, North Carolina, and seven in Lake City, Florida. AAR describes HAECO as “the second largest heavy maintenance provider in North America behind AAR.” AAR operates base maintenance facilities in Indianapolis; Miami; Oklahoma City; Rockford, Illinois; Trois-Rivieres, Quebec; and Windsor, Ontario.

AAR’s base maintenance slots are sold out for the next years, except for a few that move around, Tom Hoferer, AAR SVP of repair and engineering told Aviation Week in August. Given that AAR will not have many slots available until 2027 or 2028, the addition of HAECO Americas’ facilities will help meet customer demand.

AAR is also expanding its facilities in Miami and Oklahoma City.

AAR has significantly invested in digital capabilities (including the purchase of Trax and Aerostrat), lean initiatives and training to increase its MRO throughput and predictability. AAR expects to apply the same methodologies to HAECO Americas, which it expects to “significantly improve profitability and operational performance,” says Holmes.

Given high competition for experienced MRO workforce, the addition of HAECO Americas’ 1,600 employes, which include 30% veterans, is a big benefit of the acquisition.