AAR acquires leading parts distributor ADI American Distributors

Core Insights - AAR CORP. has acquired American Distributors Holding Co., LLC (ADI) for $146 million, enhancing its new parts distribution capabilities and market share [1][4][7] - ADI generated $149 million in revenue and $15.2 million in EBITDA for the trailing twelve months ended June 30, 2025, indicating a strong financial performance [2][4] - AAR's distribution segment has experienced over 20% organic growth annually for the past four years, positioning the company for continued growth through this acquisition [4][7] Company Overview - AAR CORP. is a leading provider of aviation services, operating in over 20 countries and supporting both commercial and government customers through various segments [5] - ADI, founded in 1983, specializes in distributing components and assemblies to commercial and defense customers, with operations in the US, UK, and India [2][6] Strategic Rationale - The acquisition is expected to broaden AAR's new parts distribution offerings, tapping into a large and fragmented total addressable market with high growth potential [7] - AAR aims to leverage its existing market position to enhance ADI's revenues and deepen OEM partnerships, which will contribute to overall sales growth [7] - The integration of ADI is anticipated to lead to margin improvements through increased sales, operational efficiencies, and business optimization [7]