AAR Corp. has acquired American Distributors Holding Co. for $146 million in cash; a move the aviation services provider says will strengthen its fast-growing parts distribution business. The transaction, announced Friday, was financed through AAR’s existing revolving credit facility.
ADI, founded in 1983 and based in Randolph, N.J., supplies electronic components and assemblies to aerospace and defense customers worldwide. The company employs about 400 people across six sites in the U.S., U.K., and India. For the 12 months ended June 30, it reported $149 million in revenue and $15.2 million in EBITDA.
The deal gives AAR additional product lines and access to new original equipment manufacturers (OEM) partnerships, which it plans to leverage to expand sales. AAR also expects to improve ADI’s margins through operational efficiencies.
“Distribution has been our fastest-growing activity, averaging more than 20% organic growth annually for the last four years,” said John M. Holmes, AAR’s chairman, president, and CEO. “This acquisition will strengthen our offering and position us for continued future growth.”
David Beck, ADI’s founder and CEO, said the move will allow his company to reach more customers while continuing its service focus. “Since ADI’s founding, we have focused on providing exceptional service to our vendors and customers, and we will be maintaining this focus with AAR while expanding the reach of our solutions,” Beck said.
AAR, headquartered near Chicago, provides aftermarket services to airlines, government agencies, maintenance and repair organizations, and OEMs. Its operations span more than 20 countries across four business units: parts supply, repair and engineering, integrated solutions, and expeditionary services.
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