MRO Memo: Private Equity Drives U.S. Aftermarket Consolidation

More private equity-backed consolidation has occurred in the U.S. aftermarket following the purchase of PAS MRO by Air Transport Components (ATC) as investors look to capitalize on demand.

 

ATC is a component maintenance provider. It said that the addition of bearings repair specialist PAS MRO would broaden its capabilities and advance its strategy of building a diversified MRO platform.

 

“PAS MRO is a natural fit for ATC Group,” said Jimmy Newman, CEO of ATC Group. “Their technical depth, customer relationships and commitment to quality align perfectly with our platform.”

 

ATC is owned by AE Industrial Partners, which sold parts specialist Kellstrom Aerospace in late 2024. Its current portfolio has several other businesses in the U.S. aftermarket, including MRO and fixed-based operator services provider Yingling Aviation, and Aim MRO, which focuses on consumable repair products and materials used primarily in the aerospace engine aftermarket.

 

Earlier this year, Florida-based repair station Airway Aerospace was acquired by AxioAero, a holding company formed by private equity firm CORE Industrial Partners.

 

The firm sought synergies with another portfolio company, Aviation Concepts (ACI), a parts provider and inventory management specialist.

 

“Combining ACI's parts distribution network with Airway's repair offerings improves turnaround times and delivers greater value to customers,” said Jason Fulton, a partner at CORE, at the time. 

 

In research for Inside MRO last year, consultancy Accenture observed that private equity companies tended to lean toward segments like modifications, test systems and components, which offer predictable and recurring repair volumes alongside clear scaling opportunities.

 

Examples in 2025 included Bain Capital’s minority investment in Panama-based MRO Holdings; HIG Capital’s investment in Florida-headquartered STS Aviation Group; and Greenbriar Equity’s purchase of Californian MRO provider Sunvair.

 

Accenture also noted that private-equity-led deals accounted for almost one-fifth of M&A activity in the MRO sector in the first half of 2025.