VSE to Buy Precision Aviation Group for $2.0B, Targets 50% Revenue Jump and $15M Synergies

4 days ago 7

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Sat, January 31, 2026 astatine 7:37 AM CST 6 min read

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VSE agreed to bargain Precision Aviation Group for astir $2.025 billion, consisting of $1.75B cash, ~$275M equity to GenNx360 and up to $125M earnout; the woody is financed by a afloat committed span facility, values PAG astatine astir 13.5x projected 2025 adjusted EBITDA, and is expected to adjacent successful Q2 2026.
Management calls the acquisition “transformational,” projecting a pro forma gross summation of astir 50%, a way to >20% consolidated adjusted EBITDA margins implicit the adjacent fewer years, and implicit $15M successful annualized synergies from procurement, web optimization and cross‑selling.
PAG adds a high‑margin, 100% aftermarket MRO and organisation platform—about $615M pro forma gross for 2025, >20% adjusted EBITDA margins, ~29 locations and ~1,000 employees—bringing DER repairs, engine/APU, avionics and supply‑chain capabilities that grow VSE’s planetary footprint.
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VSE (NASDAQ:VSEC) executives outlined a definitive statement to get Precision Aviation Group (PAG) during a league call, describing the woody arsenic a “transformational” measurement intended to accelerate the company’s aviation aftermarket strategy and assistance profitability implicit the adjacent respective years.

President and CEO John Cuomo said the acquisition is expected to “meaningfully increase” VSE’s gross by astir 50% connected a pro forma ground and enactment a way to much than 20% consolidated adjusted EBITDA margins “over the adjacent fewer years” arsenic integration and synergies progress. Management besides said the combined institution expects to thrust astir $15 cardinal successful annualized synergies implicit the adjacent fewer years.

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Cuomo emphasized that VSE and PAG person “very, precise small overlap” successful capabilities, describing the operation arsenic complementary and highlighting PAG’s integrated parts-and-MRO exemplary and what helium characterized arsenic a “hustle culture.” He said the acquisition broadens VSE’s planetary footprint and improves lawsuit proximity, turnaround times, aircraft-on-ground (AOG) support, and proviso concatenation responsiveness.

On a combined basis, absorption said the institution would run 60 locations worldwide, including 47 repair facilities and 11 organisation centers of excellence.

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Cuomo described PAG arsenic a planetary supplier of aviation aftermarket MRO services, distribution, and proviso concatenation solutions supporting commercial, concern and wide aviation, rotorcraft, and defence extremity markets.