VSE Corporation’s Acquisition of Precision Aviation Group

VSE Corporation (NASDAQ: VSEC) announced a definitive agreement to acquire Precision Aviation Group (PAG), a portfolio company of GenNx360 Capital Partners, for approximately $2.025 billion in cash and equity. The transaction is structured as a cash‑and‑stock deal and will be completed after regulatory and shareholder approvals.

Transaction Highlights

  • Purchase price: $2.025 billion, paid in a mix of cash and equity shares issued by VSE.
  • PAG profile: Founded in 1996, headquartered in Atlanta, Georgia.
  • Operates 29 locations worldwide.
  • Employs more than 1,000 personnel.
  • Serves over 10,000 customers globally.
  • Executes over 175,000 repairs annually.
  • Projected adjusted revenue for the fiscal year: $615 million.
  • Strategic rationale: The deal expands VSE’s capabilities in high‑margin, high‑growth aviation aftermarket services, creating a leading independent, scaled aviation aftermarket pure‑play.

Financial Impact

  • Pro forma 2025 aviation revenue: Expected to increase by ~50 % post‑acquisition.
  • Adjusted EBITDA margin:
  • VSE’s consolidated margin is projected to exceed 20 % over the next few years as integration and synergy initiatives progress.
  • PAG’s adjusted EBITDA margin is expected to be immediately accretive to VSE’s consolidated margin.
  • Overall synergy: The transaction is anticipated to enhance VSE’s profitability and scale its global footprint in maintenance, repair, and overhaul (MRO) services.

Upcoming Investor Communications

  • Presentation and conference call: Scheduled for January 29, 2026, at 8:00 AM ET.
  • Question‑and‑answer session: Included in the same event to address investor inquiries.

Company Context

  • Industry: Commercial Services & Supplies – Industrials sector.
  • Market presence: Listed on the Nasdaq with a current closing price of $206.02 (as of 2026‑01‑27).
  • Market capitalization: $4.858 billion.
  • Price‑to‑earnings ratio: 72.93.
  • Core business: Supplier of aftermarket distribution and repair services for land, sea, and air transportation assets, serving both government and commercial customers. Services include maintenance, repair, overhaul; parts distribution; supply‑chain support; engineering consultation; training; and IT and energy consulting.

The acquisition is positioned to strengthen VSE’s market leadership in the aviation aftermarket, broaden its service portfolio, and deliver enhanced financial performance to shareholders.