VSE Corporation, a leading provider of aviation aftermarket distribution and repair services, has announced a definitive agreement to acquire GenNx/AeroRepair IntermediateCo Inc., the parent company of Aero 3, a global Maintenance, Repair, and Overhaul (MRO) service provider and distributor specializing in the commercial wheel and brake aftermarket. The deal, valued at $350 million in cash, is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions.
The acquisition marks a major step in VSE’s growth strategy, significantly expanding its global footprint, MRO capabilities, and OEM-aligned service portfolio. Aero 3, a portfolio company of GenNx360 Capital Partners, operates nine strategically located MRO facilities across the United States, Canada, and the United Kingdom. These locations will bring VSE’s total to twelve global wheel and brake repair sites, strengthening its position as one of the industry’s most comprehensive aftermarket platforms.
Founded in 1994 and headquartered in Manchester, New Hampshire, Aero 3 employs approximately 280 professionals, supports over 750 global customers, and completes 50,000 MRO events per year. The company specializes in three business units: wheel-and-brake MRO services, OEM-aligned distribution, and proprietary repair and manufacturing solutions. Its services are integrated across commercial, regional, and business aviation sectors, offering repair, logistics, and custom-engineered products to major OEMs and aircraft operators.
The transaction will deepen VSE’s alignment with OEM partners while enhancing the company’s global distribution capabilities. It also adds a portfolio of proprietary, high-margin products, supporting VSE’s strategy to grow through differentiated engineering and manufacturing solutions.
From a financial perspective, Aero 3 generated approximately $120 million in revenue over the trailing 12 months ended August 2025, with adjusted EBITDA margins exceeding 20%. On a pro forma basis, the acquisition is expected to increase VSE’s consolidated adjusted EBITDA margin by more than 50 basis points. VSE plans to fund the purchase through a combination of equity financing and borrowings under its existing credit facility.
This acquisition builds on the momentum from VSE’s 2023 purchase of Desser Aerospace, a leader in tire distribution. The combination of Desser’s tire expertise and Aero 3’s wheel-and-brake MRO services creates a unified nationwide solution for fleet operators, enabling VSE to offer integrated tire, wheel, and brake aftermarket services.
Following the deal, Daniel Bell, Chief Executive Officer of Aero 3, and his leadership team will remain with the business to oversee integration and continued growth within VSE’s Aviation Wheel and Brake Group.
Advisors/counsel: Legal counsel for VSE was provided by Jones Day, while Harris Williams LLC acted as financial advisor and Winston & Strawn LLP served as legal counsel to GenNx360 Capital Partners and Aero 3.
KEY QUOTES:
“We are pleased to announce the acquisition of Aero 3, an important step in expanding our global wheel and brake aftermarket capabilities. This acquisition aligns perfectly with our OEM-centric strategy and builds upon the success of our Desser Aerospace acquisition. Aero 3 broadens our MRO, distribution, and proprietary product offerings while extending our global footprint. With the addition of Aero 3’s nine MRO facilities, VSE will now operate twelve strategically located wheel and brake repair facilities across the U.S., Canada, and the U.K., serving commercial, regional, and business & general aviation customers. The combination of VSE and Aero 3 establishes one of the industry’s most comprehensive global aftermarket platforms focused on aircraft wheels and brakes. Aero 3 is led by a market-leading management team that will remain with the business and help drive continued growth across the VSE Aviation Wheel and Brake Group. Together, our customer- and operations-focused strategy and growth-oriented mindset will allow VSE to capitalize on the expanding global wheel and brake aftermarket.”
John Cuomo, President and CEO, VSE Corporation
“Joining VSE Aviation represents an important next chapter for Aero 3. Our organization has earned a global reputation for technical expertise, reliability, and trusted partnerships with both OEMs and aircraft operators. Our focus on delivering fully integrated repair solutions aligns seamlessly with VSE’s culture of operational excellence and customer commitment. Together, we will strengthen our capabilities, accelerate our expansion, and continue providing innovative, comprehensive solutions to the global aviation community.”
Daniel Bell, Chief Executive Officer, Aero 3
“We are proud to see Aero 3 join the VSE Aviation platform and confident they will continue to thrive in this next phase of growth. Dan and his team have built an exceptional, customer-focused business, and it has been a pleasure partnering with them as we executed on our buy-and-build strategy.”
Pratik Rajeevan, Principal, GenNx360 Capital Partners
