VSE Corporation has completed its $2.025bn acquisition of Precision Aviation Group, months after describing the transaction as a “transformational” move that would significantly expand its aviation aftermarket scale and capabilities.

The deal creates a larger independent aviation aftermarket platform spanning 61 locations across eight countries, including 48 repair facilities and 11 distribution centres, strengthening VSE’s maintenance, repair and overhaul and distribution capabilities across commercial aviation, business aviation, rotorcraft and defence markets.

When the agreement was first announced in January, VSE said the acquisition would increase its estimated pro forma 2025 aviation revenue by around 50% while supporting a longer-term push toward adjusted EBITDA margins above 20%.

VSE says the acquisition broadens its technical expertise and global reach across commercial aviation, business aviation, general aviation, rotorcraft, OEM and defence sectors.

“Today marks a significant milestone in executing our strategy to build a focused, high-quality aviation aftermarket platform,” says John Cuomo, president and chief executive officer of VSE. “The addition of PAG meaningfully expands our global footprint, strengthens our repair capabilities and enhances our ability to deliver integrated, end-to-end solutions to our customers.”

Cuomo says the company will now focus on integration and operational efficiencies through cross-selling opportunities, repair insourcing and procurement savings. The executive also welcomed PAG employees into the wider VSE business, saying the company looked forward to their future contribution.

The transaction includes $1.75 billion in cash alongside approximately $275 million in equity issued to GenNx360 Capital Partners, which can be exchanged for VSE common stock.

An additional contingent earnout payment of up to $125 million may also be paid depending on 2026 performance.

VSE funded the acquisition using proceeds from its February 2026 equity and tangible equity unit offerings together with $900 million raised through a new Term Loan B facility maturing in 2033.