Here's some news that just broke a couple minutes ago: AAR will sell its cargo group--which includes Telair International, Telair U.S. and Nordisk Aviation Products--to TransDigm for $725 million.
The deal is expected to close before May 31 and net AAR $200 million after expenses and fees.
Also up for sale: AAR's precision systems manufacturing business, which it plans to report as a discontinued operation.
What does this mean? AAR is consolidating to two divisions: Aviation Services (which includes MRO and supply chain) and Expeditionary Services (airlift and mobility services). While AAR CEO David Storch says government airlift revenues are down right now, "we have confidence in our industry-leading positions and see substantial opportunities ahead."
And the MRO piece? "We are very pleased with the double-digit organic growth rate" in the Aviation Services division.