AAR to acquire Aircraft Reconfig Technologies, expanding its engineering and certification capabilities and creating additional revenue streams

Rhea-AI Summary

AAR (NYSE:AIR) entered a definitive agreement to acquire Aircraft Reconfig Technologies for $35 million in an all-cash transaction, subject to customary adjustments and closing conditions. The target, founded in 1990 with about 100 employees in Greensboro, North Carolina, provides passenger aircraft reconfiguration services including project management, engineering, and certification.

Aircraft Reconfig Technologies holds an FAA Part 21 and ODA, plus patents, PMA and supplemental type certificates; AAR says these qualifications will expand in-house engineering and certification within its Repair & Engineering segment. The deal is expected to close in Q4 of AAR's Fiscal 2026 and is described as accretive to margins and earnings.

Positive

• $35M all-cash acquisition announced
• Adds ~100 engineering team members in Greensboro NC
• Acquires FAA Part 21 and ODA plus PMA and STCs
• Expected close in Q4 FY2026 and described as accretive

Negative

• Transaction subject to customary adjustments and regulatory approvals
• All-cash $35M purchase will require cash outflow from AAR

Key Figures

Acquisition price $35 million All-cash purchase of Aircraft Reconfig Technologies, subject to adjustments

Team size Approximately 100 team members Aircraft Reconfig Technologies employees based in Greensboro, North Carolina

Market Reality Check

$81.21 Last Close

Volume Volume 342,675 is roughly in line with 20-day average 330,688 (relative 1.04x). normal

Technical Price $81.21 is trading above 200-day MA at $71.82, indicating a pre-existing uptrend.

Peers on Argus

Peers show mixed moves: TGI +0.7%, SPR +0.92% versus VSEC -3.47%, PL -9.41%, MRCY -3.02%, suggesting stock-specific factors around this acquisition.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 10	Joint venture	Positive	+3.5%	Completion of xCelle Asia JV to expand nacelle MRO capacity in APAC.
Dec 09	Distribution extension	Positive	+3.5%	Multi-year extension of exclusive Collins Aerospace de-icing distribution deal.
Dec 09	Earnings date notice	Neutral	-2.0%	Announcement of timing for Q2 FY26 results and conference call details.
Dec 08	Distribution agreement	Positive	-2.0%	Multi-year extension of exclusive Arkwin Industries distribution agreement.
Dec 04	CFO transition	Negative	-1.3%	Interim CFO appointment following resignation of prior Chief Financial Officer.

Pattern Detected

Recent news often elicits clear reactions, with positive strategic announcements typically aligning with price moves, while some partnership/distribution news has seen negative divergence.

Recent Company History

Over the past weeks, AAR has announced multiple strategic moves, including joint ventures, extended distribution agreements, and a CFO transition. Notably, news on Dec 8–10 around commercial partnerships produced both positive (+3.5%) and negative (-2.05%) reactions, while the CFO transition on Dec 4 coincided with a modest decline. Today’s acquisition continues the pattern of active strategic expansion following earlier deals and partnerships.

Market Pulse Summary

This announcement adds another acquisition to AAR’s recent string of deals, this time targeting Aircraft Reconfig Technologies for $35 million to deepen engineering and certification capabilities. It complements prior expansions in MRO capacity, software, and distribution. Investors may focus on integration execution, margin accretion, and how in-house certification and IP leverage translate into new revenue streams alongside existing Repair & Engineering and MRO operations.

Key Terms

m&a financial

"The acquisition continues AAR's accelerated growth strategy through M&A"

M&A, short for mergers and acquisitions, involves one company combining with or purchasing another company to grow, streamline operations, or gain competitive advantages. For investors, M&A activity can signal potential for increased value, new opportunities, or changes in market dynamics, making it an important factor to watch in the business landscape.

mro technical

"leading independent MRO provider in North America"

MRO stands for Maintenance, Repair, and Operations, referring to the supplies and services companies provide to keep machinery, buildings, and infrastructure functioning smoothly. These essentials are vital for ongoing business activities, much like routine car maintenance keeps a vehicle running reliably. Investors pay attention to MRO companies because their performance reflects the health of industries that rely heavily on regular upkeep and support services.

supplemental type certificates regulatory

"includes patents, parts manufacturer approval (PMA), and supplemental type certificates"

A supplemental type certificate (STC) is an official approval from aviation regulators that allows a company to legally change or add to an aircraft’s original design, like getting a certified recipe modification for a manufactured product. For investors, an STC matters because it clears regulatory hurdles needed to sell, install, or operate aircraft modifications or equipment, which can unlock new revenue streams, reduce compliance risk, and affect maintenance costs and liability exposure.

AI-generated analysis. Not financial advice.

The acquisition continues AAR's accelerated growth strategy through M&A

WOOD DALE, Ill., Dec. 17, 2025 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced today it has entered into a definitive agreement to purchase Aircraft Reconfig Technologies, a leading aircraft interiors engineering company, from ZIM Aircraft Cabin Solutions for $35 million in an all-cash transaction, subject to customary adjustments. Upon closing, the acquisition will immediately expand AAR's engineering and certification capabilities in its Repair & Engineering segment, allowing AAR to further differentiate itself as the leading independent MRO provider in North America.

Aircraft Reconfig Technologies is an engineering company specializing in passenger aircraft reconfiguration for leading global airlines. The company's full-service solutions include project management, engineering, and certification for aircraft interior reconfigurations. Founded in 1990, the company's approximately 100 team members are based in Greensboro, North Carolina.

An FAA Part 21 and 183 Organization Designation Authorization (ODA) holder, Aircraft Reconfig Technologies' robust IP portfolio includes patents, parts manufacturer approval (PMA), and supplemental type certificates. Incorporating these qualifications into AAR's Repair & Engineering segment will expand AAR's design capabilities for more complex aircraft modification work to complement its MRO offering. The ODA designation will also minimize AAR's reliance on third parties for design certification.

"AAR is excited to announce our agreement to acquire Aircraft Reconfig Technologies, a company with a strong reputation for high quality reconfiguration solutions. M&A is an important element of AAR's continued growth strategy. This acquisition will elevate AAR's engineering and in-house certification services to drive proprietary solutions as part of our broader MRO offering. We look forward to welcoming the skilled team at Aircraft Reconfig Technologies to AAR," said John M. Holmes, AAR's Chairman, President and CEO.

"This acquisition will add incremental engineering capabilities that will further differentiate AAR and enable us to expand our total accessible market," added Tom Hoferer, AAR's Senior Vice President of Repair & Engineering. "Further, by combining Aircraft Reconfig Technologies' qualifications with AAR's leadership position in MRO, we will be able to bring certification for our engineering solutions in-house, which will enhance our offerings to customers and create opportunities for AAR to pursue additional work."

The transaction is expected to close in the fourth quarter of AAR's Fiscal Year 2026, subject to customary closing conditions, including receipt of certain regulatory approvals. The acquisition is expected to be accretive to both margins and earnings.

For more information on AAR, visit aarcorp.com.

About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. Additional information can be found at aarcorp.com.

About Aircraft Reconfig Technologies
Aircraft Reconfig Technologies is a leading aircraft interiors engineering company owned by ZIM Aircraft Cabin Solutions. Established in 1990, the company's full-service solutions include project management, engineering, monument and kit production, and certification for aircraft interior reconfigurations for global airlines. Additional information can be found at https://www.art-aero.com/.

This press release contains certain statements regarding the pending acquisition of Aircraft Reconfig Technologies, including the anticipated timing of the acquisition and the expected benefits related to the acquisition, including expansion of the Company's engineering, design and certifications capabilities in its Repair & Engineering segment, execution of the Company's strategies, and impacts on the Company's financial results. Such statements are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and reflect management's expectations about future conditions. Forward-looking statements may also be identified because they contain words such as ''anticipate,'' ''believe,'' ''continue,'' ''could,'' ''estimate,'' ''expect,'' ''intend,'' ''likely,'' ''may,'' ''might,'' ''plan,'' ''potential,'' ''predict,'' ''project,'' ''seek,'' ''should,'' ''target,'' ''will,'' ''would,'' or similar expressions and the negatives of those terms. These forward-looking statements are based on beliefs of management, as well as assumptions and estimates based on information currently available to us and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. For a discussion of these and other risks and uncertainties, refer to "Risk Factors" in our most recent Annual Report on Form 10-K. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described and the anticipated benefits of the acquisition may not be realized. These events and uncertainties are difficult or impossible to predict accurately, and many are beyond our control. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements, except as required by law.

Contact:
Media Team
+1-630-227-5100
Editor@aarcorp.com

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SOURCE AAR CORP.

FAQ

What is the purchase price AAR agreed to pay for Aircraft Reconfig Technologies (AIR)?

AAR agreed to acquire Aircraft Reconfig Technologies for $35 million in an all-cash transaction, subject to customary adjustments.

When is the AAR (AIR) acquisition of Aircraft Reconfig Technologies expected to close?

The transaction is expected to close in Q4 of AAR's Fiscal 2026, subject to customary closing conditions and regulatory approvals.

How will the Aircraft Reconfig Technologies deal affect AAR's engineering capabilities (AIR)?

The acquisition adds in-house engineering and certification capabilities including FAA Part 21 and ODA, PMA, STCs and related IP to AAR's Repair & Engineering segment.

Will the Aircraft Reconfig Technologies acquisition be accretive to AAR (AIR) earnings and margins?

AAR stated the acquisition is expected to be accretive to both margins and earnings.

How many employees does Aircraft Reconfig Technologies have and where are they based?

Aircraft Reconfig Technologies has approximately 100 team members based in Greensboro, North Carolina.

What regulatory or closing risks should AIR shareholders be aware of for this acquisition?

The transaction is subject to customary closing conditions, including receipt of certain regulatory approvals, and to customary purchase-price adjustments.