VSE Corporation announced it has agreed to acquire Precision Aviation Group (PAG) from GenNx360 Capital Partners in a cash-and-equity transaction valued at approximately $2.025 billion upfront, a deal VSE called transformational for its aviation aftermarket strategy.
The agreement values PAG at roughly 13.5x expected 2025 adjusted EBITDA when including full anticipated run rate synergies, according to VSE. The purchase price includes $1.75 billion in cash and about $275 million in equity issued to GenNx, plus up to $125 million of contingent earnout consideration tied to PAG’s 2026 adjusted EBITDA performance. VSE said it has a fully committed bridge facility to support the cash portion and expects the transaction to close in the second quarter of 2026, subject to regulatory approvals and customary conditions.
Founded in 1996 and headquartered in Atlanta, PAG provides aviation maintenance, repair, and overhaul services, distribution, and supply chain solutions across commercial, business, and general aviation, rotorcraft, and defense end markets. PAG operates 29 locations worldwide, employs more than 1,000 people, serves more than 10,000 customers globally, and completes more than 175,000 repairs annually. PAG expects to generate approximately $615 million of adjusted revenue for the fiscal year ended December 31, 2025.
VSE said the combination would create a more diversified, globally scaled aviation aftermarket platform, expanding its engine and component capabilities and increasing proprietary repair and solutions content. On a combined basis, the company expects to operate 60 locations worldwide, with a broader MRO network designed to improve customer proximity, turnaround times, aircraft-on-ground support, and supply chain responsiveness.
PAG’s operations are organized into four business units: Component Services, Engine Services, Avionics Services, and Proprietary Solutions. VSE said PAG’s platform expands its exposure across commercial, cargo, business and general aviation, rotorcraft, engine lessors, OEMs, and defense, increasing resilience through market cycles.
VSE expects more than $15 million of annualized synergy opportunities over the next few years, driven by cross-selling, insourcing of product support and repairs, operational and cost efficiencies, procurement savings, network optimization, and working capital and supply chain improvements. VSE also said the deal is expected to support a path to exceed 20% consolidated adjusted EBITDA margin over the next few years as integration and synergy initiatives progress, and that PAG would scale VSE Aviation’s aftermarket revenue platform, representing an estimated roughly 50% increase in full-year 2025 revenue on a pro forma basis.
Support: Perella Weinberg Partners served as exclusive financial and debt capital markets advisor to VSE, and Jones Day served as legal counsel. Winston & Strawn served as legal counsel to GenNx, with JP Morgan and Jefferies as sell-side advisors. VSE said it would host a conference call on January 29, 2026, at 8:00 a.m. ET to review the acquisition.
KEY QUOTES
“This acquisition represents a pivotal moment for VSE and a major milestone in our strategy to build a scaled, differentiated, higher-margin aviation aftermarket platform. We have long admired PAG and view it as an exceptional strategic fit within the VSE portfolio. PAG adds a differentiated parts and services model, new and highly complementary capabilities, a best-in-class sales organization, a scaled MRO footprint, deep technical expertise, and strong customer and supplier relationships across growing commercial, B&GA, rotorcraft, and defense end markets.”
John Cuomo, President and Chief Executive Officer, VSE Corporation
“This transformational transaction is expected to significantly expand our scale, increase our proprietary solutions content, and further strengthen our position as a mission-critical partner to aviation operators worldwide. Together, we expect to deliver meaningful value for our customers, suppliers, employees, and shareholders through enhanced growth, greater diversification, and near-term margin expansion,”
John Cuomo, President and Chief Executive Officer, VSE Corporation
“We have built a reputation for customer responsiveness, expansive technical capabilities and dependable support for operators worldwide. Joining VSE represents an important next chapter for PAG. VSE shares our commitment to technical excellence, operational discipline, and world-class customer service. We are excited to combine our platforms to broaden capabilities, strengthen global reach, and accelerate long-term growth for the benefit of our customers, employees, and partners.”
David Mast, Chief Executive Officer, Precision Aviation Group
“We are incredibly proud of the exceptional platform we have built at PAG and believe VSE is the ideal strategic partner to accelerate its next stage of growth.”
Pratik Rajeevan, Principal, GenNx360 Capital Partners
“Our significant equity rollover reflects our conviction in PAG’s momentum and in VSE’s ability to scale the platform, enhance capabilities, and deliver even greater value for customers.”
Ron Blaylock, Founder and Managing Partner, GenNx360 Capital Partners
