U.S.-based AAR has divested its landing gear repair to GA Telesis for around $51 million, with the deal expected to close in the first quarter of this year.
The announcement was made late last month following the signing of a definitive agreement between the parties. Once closed, the deal will see Fort Lauderdale, Florida-headquartered GA Telesis strengthen its landing gear repair capabilities in both commercial and military aviation segments and take on a portfolio comprised of Airbus, Boeing, Bombardier and Embraer-manufactured aircraft.
In terms of physical locations, GA Telesis will take over AAR’s landing gear overhaul site in Miami, which provides MRO services to commercial and government customers.
As part of the deal, which is still subject to regulatory and customary conditions, AAR will remain the prime contractor to the U.S. Air Force landing gear performance-based logistics contract, with GA Telesis continuing maintenance services in Miami as a subcontractor.
GA Telesis will also add capability in the form of high-velocity oxy-fuel coating capabilities, which will enable it to offer advanced surface treatments supporting longevity and durability of aircraft components.
Abdol Moabery, President and CEO of GA Telesis, says the acquisition will enhance the business’s service offerings and provide greater value to its aviation industry partners as it looks to further expand its operation, which includes 54 locations in 30 countries.
"This acquisition will allow us to expand the GA Telesis ecosystem further and support our mission to deliver innovative solutions to our customers worldwide,” Moabery said.
The deal is also expected to address capacity constraints identified in GA Telesis’ customer network.
"Expansion of our landing systems capabilities will have a profound impact on addressing the capacity constraints that our existing customers are facing," says Pastor Lopez, president of GA Telesis' MRO services. "The integration of the new business units with GA Telesis' existing landing gear business unit will lead to better operational efficiency for our airlines globally.”
At the time of the announcement, AAR said that the divestment of its landing gear operation is part of its plans to focus on its core businesses. “This transaction will increase our operating margins, improve our cash flow and enable us to reallocate resources to drive further growth in our core businesses,” said AAR Chairman, President and CEO John Holmes.
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