AAR CORP. announced it has acquired American Distributors Holding (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 US, UK, and India. For the trailing twelve 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.