VSE Corporation announced it completed the acquisition of Precision Aviation Group for approximately $2.025 billion in cash and equity, expanding VSE’s aviation aftermarket distribution and repair platform.
Precision Aviation Group, previously backed by GenNx360 Capital Partners, provides aviation aftermarket maintenance, repair, overhaul, distribution, and supply chain services across business aviation, rotorcraft, and defense markets.
According to the companies, the combined platform now includes 61 locations across eight countries, including 48 repair facilities and 11 distribution centers. The acquisition expands VSE’s global aviation footprint and enhances its capabilities across maintenance, repair, and overhaul services as well as aviation parts distribution.
VSE Corporation said the transaction is expected to increase the company’s revenue by approximately 50% on a pro forma 2025 basis and immediately improve adjusted EBITDA margins. The company also said the acquisition supports its long-term strategy of building a focused aviation aftermarket platform serving commercial aviation, business and general aviation, rotorcraft, OEM, and defense customers.
The $2.025 billion purchase price included $1.75 billion in cash and approximately $275 million in equity issued to GenNx360 Capital Partners that is exchangeable for VSE common stock. The transaction also includes a potential additional earnout payment of up to $125 million tied to 2026 performance targets.
The acquisition was financed using proceeds from VSE’s February 2026 equity and tangible equity unit offerings, along with $900 million from a new Term Loan B facility maturing in 2033.
VSE Corporation is headquartered in Miramar, Florida, and provides aviation distribution and repair services for commercial and business aviation markets. Precision Aviation Group operates globally and specializes in engines, avionics, components, and proprietary aviation repair solutions.
The company said integration efforts will focus on cross-selling opportunities, repair insourcing, procurement efficiencies, and broader operational synergies across the combined business.
KEY QUOTES:
“Today marks a significant milestone in executing our strategy to build a focused, high-quality aviation aftermarket platform. The addition of PAG meaningfully expands our global footprint, strengthens our repair capabilities, and enhances our ability to deliver integrated, end-to-end solutions to our customers.”
“With the transaction closed, our focus shifts to integration and synergy realization through cross-selling, repair insourcing, and procurement efficiencies. PAG’s margin profile is immediately accretive and supports a clear path to exceeding 20% consolidated Adjusted EBITDA margins over time.”
“Importantly, we are excited to welcome the talented PAG team to the VSE family and look forward to their contributions as we move forward together.”
John Cuomo, President & CEO, VSE Corporation
