AAR To Acquire A 65% Interest In MRO Holdings For An Equity Value Of ~$1.8B; To Fund Deal With $2.10B Debt, $780M Equity At $135/Share, $230M PIPE; Co. Has Option To Buy Remaining 35% Of MRO Holdings In Tranches Over Six Years

AAR CORP. (NYSE: AIR) has announced a definitive agreement to acquire a 65% interest in MRO Holdings for an equity value of approximately $1.8 billion, with an implied enterprise value of $4.0 billion. The transaction will be funded through $2.1 billion in new debt, $780 million in equity at $135 per share, and $230 million from a PIPE offering. AAR plans to repay about $1.3 billion of MRO Holdings' existing borrowings and has the option to acquire the remaining 35% interest in tranches over six years.