VSE Corporation acquires Precision Aviation Group in $2B (€1.7B) aviation aftermarket deal

VSE Corporation (NASDAQ: VSEC), a leading provider of aviation aftermarket distribution and MRO services, announced a definitive agreement to acquire Precision Aviation Group, Inc. (PAG) for approximately $2.025 billion (€1.7B) in cash and equity.

The acquisition combines VSE’s aftermarket platform with PAG’s global operations, spanning 29 locations, over 1,000 employees, and 175,000 annual repairs.

PAG, founded in 1996 and headquartered in Atlanta, Georgia, serves commercial, business, general aviation, rotorcraft, and defense markets. It is expected to generate $615 million (€517 million) of adjusted revenue for 2025. The deal is anticipated to increase VSE’s pro forma 2025 aviation revenue by roughly 50%, with consolidated adjusted EBITDA margins expected to exceed 20% over the next few years. PAG’s margin profile is immediately accretive to VSE’s adjusted EBITDA.

VSE CEO John Cuomo commented, “This acquisition represents a pivotal moment for VSE…PAG adds differentiated parts and services, complementary capabilities, a best-in-class sales organisation, and a scaled MRO footprint. Together, we expect to deliver meaningful value through enhanced growth, diversification, and near-term margin expansion.”

PAG CEO David Mast noted, “Joining VSE represents an important next chapter, broadening capabilities, strengthening global reach, and accelerating long-term growth for our customers and employees.”

Strategically, the acquisition expands VSE’s aviation aftermarket capabilities across component and engine MRO, avionics, proprietary solutions, and distribution, with 60 global locations projected post-combination. VSE anticipates more than $15 million (€12.6M) of annualised synergies from cross-selling, operational efficiencies, network optimisation, and supply chain improvements.

The transaction includes $1.75 billion (€1.47B) in cash, $275 million (€231M) in equity consideration, and up to $125 million (€105M) contingent earnout, with closing expected in Q2 2026, pending regulatory approvals.

Read more about the acquisition in the VSE press release.