AAR Corp. (NYSE:AIR) entered into a definitive agreement to acquire Product Support business of Triumph Group, Inc. for approximately $730 million on December 21, 2023. AAR?s acquisition of Triumph Product Support is supported by a fully committed bridge facility. AAR intends for permanent financing to include a mix of debt and equity to maintain a strong balance sheet to support future growth. The transaction is expected to close in the first quarter of the 2024 calendar year, subject to customary closing conditions, including receipt of certain regulatory approvals. Triumph Product Support has over 700 employees. As of February 14, 2024, AAR intends to offer, subject to market conditions and other factors, $550 million aggregate principal amount of senior notes due 2029. AAR intends to use the net proceeds of the proposed senior notes offering to fund a portion of the purchase price for its acquisition. AAR also intends to amend its revolving credit facility to, among other things, increase the aggregate lending commitments thereunder from $620 million to at least $825 million. AAR intends to fund the balance of the acquisition consideration with cash on hand and borrowings under the Revolving Credit Facility, as amended.
BofA Securities is acting as lead financial advisor, Wells Fargo Securities, LLC is acting as financial advisor, and Bradley C. Faris; Jason Morelli of Latham & Watkins LLP is acting as legal counsel to AAR. Wells Fargo Securities, LLC and BofA Securities are providing AAR with committed bridge financing for the transaction. Goldman Sachs is acting as financial advisor and Marie L. Gibson of Skadden, Arps, Slate, Meagher & Flom LLP acted as external counsel to Sellers.

AAR Corp. (NYSE:AIR) completed the acquisition of Product Support business of Triumph Group, Inc. on March 1, 2024.