AAR CORP [AIR] - Convertible Preferred Issuance
AAR CORP is issuing 5,783.894 shares of non-voting Series A Convertible Preferred Stock valued at $780,825,690, alongside a cash purchase price of $1,819,174,310, subject to customary adjustments and closing conditions.
Why this matters
AAR CORP, a Delaware-incorporated company in the aircraft and parts industry, focuses on providing aviation aftermarket services, including parts, repair, and software solutions. The company has announced its decision to issue 5,783.894 shares of non-voting Series A Convertible Preferred Stock valued at $780,825,690, along with a cash purchase price of $1,819,174,310, as part of its strategic move to acquire a 65% controlling interest in MRO Holdings. This acquisition, valued at an implied enterprise value of $4.0 billion, aims to expand AAR's aviation aftermarket platform by integrating MRO Holdings' extensive aircraft maintenance, repair, and overhaul capabilities. The transaction is expected to enhance AAR's service offerings and create significant growth opportunities, subject to customary adjustments and closing conditions.