VSE Corporation, a provider of aviation aftermarket distribution and repair services, has entered into a definitive agreement to acquire Precision Aviation Group, Inc. (PAG), a portfolio company of GenNx360 Capital Partners (GenNx), for a total upfront consideration of approximately $2.025 billion in cash and equity.

Founded in 1996 and headquartered in Atlanta, Georgia, PAG is a global provider of aviation MRO services, distribution and supply chain solutions serving commercial, business and general aviation, rotorcraft, and defence end markets. PAG operates 29 locations worldwide, employs more than 1,000 people, serves over 10,000 customers globally and completes more than 175,000 repairs annually. PAG expects to generate approximately $615 million of adjusted revenue for the fiscal year ended 31 December 2025.

The acquisition is expected to significantly expand VSE's scale and enhance its engine and component service capabilities across the aviation aftermarket, while maintaining a focused strategy centred on high-value, high-margin, mission-critical and differentiated services. Together, VSE and PAG will create a more diversified, globally scaled aviation aftermarket platform with broader technical capabilities and an expanded portfolio of proprietary repair and solutions content designed to strengthen customer support, extend asset life and reduce total cost of ownership.

“This acquisition represents a pivotal moment for VSE and a major milestone in our strategy to build a scaled, differentiated, higher-margin aviation aftermarket platform,” remarks John Cuomo, president and chief executive officer of VSE Corporation. “We have long admired PAG and view it as an exceptional strategic fit within the VSE portfolio. PAG adds a differentiated parts and services model, new and highly complementary capabilities, a best-in-class sales organisation, a scaled MRO footprint, deep technical expertise, and strong customer and supplier relationships across growing commercial, B&GA, rotorcraft and defence end markets.

“This transformational transaction is expected to significantly expand our scale, increase our proprietary solutions content and further strengthen our position as a mission-critical partner to aviation operators worldwide. Together, we expect to deliver meaningful value for our customers, suppliers, employees and shareholders through enhanced growth, greater diversification and near-term margin expansion,” concludes Cuomo.

“We have built a reputation for customer responsiveness, expansive technical capabilities and dependable support for operators worldwide. Joining VSE represents an important next chapter for PAG,” states David Mast, chief executive officer of Precision Aviation Group. “VSE shares our commitment to technical excellence, operational discipline and world-class customer service. We are excited to combine our platforms to broaden capabilities, strengthen global reach and accelerate long-term growth for the benefit of our customers, employees and partners.”

“We are incredibly proud of the exceptional platform we have built at PAG and believe VSE is the ideal strategic partner to accelerate its next stage of growth,” comments Pratik Rajeevan, principal at GenNx360 Capital Partners.

“Our significant equity rollover reflects our conviction in PAG's momentum and in VSE's ability to scale the platform, enhance capabilities and deliver even greater value for customers,” adds Ron Blaylock, founder and managing partner of GenNx360 Capital Partners.

Inclusive of full anticipated run-rate synergies, the total upfront consideration represents approximately 13.5 times PAG's expected adjusted EBITDA for the full year period ended December 2025.

The cash portion of the upfront consideration is supported by a fully committed bridge facility. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.