US aircraft maintenance provider AAR has acquired HAECO Americas, the US business of Hong Kong maintenance provider HAECO Group, for $78 million in an all-cash transaction.
AAR disclosed the acquisition on 3 November, saying the move “expands AAR’s heavy maintenance footprint and accelerates the company’s strategic objective to grow its repair and engineering segment”.
As part of the acquisition AAR also secured customer agreements expected to generate $850 million in sales over multiple years. AAR says those agreements “effectively sell out the two HAECO Americas facilities”.
HAECO Americas is based in Greensboro, North Carolina and employs more than 1,600 people at locations in Greensboro and in Lake City, Florida. Its facilities’ services includes heavy aircraft maintenance, avionics work and passenger-to-freighter aircraft conversions.
Illinois-based AAR calls HAECO Americas the second largest aviation maintenance provider in North America, after AAR itself.
AAR chief executive John Holmes says his company has recently invested significantly in training and technologies aimed at improving quality and efficiency, reducing turnaround times, increasing operating margins and improving employee retention.
“We plan to apply our successful model to the HAECO Americas facilities and expect to significantly improve profitability and operational performance,” says Holmes.
HAECO has not commented on the acquisition.
