AAR CORP., a provider of aviation services to commercial and government operators, MROs and OEMs, announced it has acquired American Distributors Holding Co., LLC (ADI), a distributor of components and assemblies, for $146 million in an all cash transaction funded using the company’s existing revolving credit facility. The acquisition immediately expands AAR’s new parts Distribution activity with new additional product lines and extensive OEM relationships. The business will become part of AAR’s Parts Supply segment.
Founded in 1983, ADI distributes to a broad set of commercial and defense customers across the aerospace and defense industry. The company’s approximately 400 team members provide value-added distribution services, including parts and assemblies, to its OEM partners. ADI serves its customers from six locations across the U.S., U.K. and India. For the trailing 12 months ended June 30, 2025, ADI generated $149 million in revenue and $15.2 million in EBITDA.
STRATEGIC RATIONALE
- Expands AAR’s new parts distribution offerings: ADI’s complementary electronics product lines broaden AAR’s new parts distribution offerings. This represents a large total addressable market with significant fragmentation and high growth opportunities.
- Grows partnerships and revenues: The acquisition adds new OEM partnerships to AAR’s offerings and deepens AAR’s existing OEM relationships. The company plans to leverage its existing market position to significantly grow ADI revenues.
- Positions ADI for margin improvement: AAR expects incremental margin improvement through sales growth, operational efficiency and business optimization.
EXECUTIVE SUMMARY
“AAR Distribution is AAR’s fastest growing activity, averaging more than 20 percent organic growth in each of the last four years. This acquisition will strengthen our offering and position us for continued future growth. We expect to leverage AAR’s broad market reach to increase ADI’s market share and expand their product offering,” said AAR’s Chairman, President and CEO John M. Holmes. “We are excited to welcome the ADI team to AAR.”
“ADI is excited to become part of AAR,” said ADI’s Founder and CEO David Beck. “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.”