VSE Corporation agreed on 29 January to acquire Precision Aviation Group (PAG) from GenNx360 Capital Partners for total upfront consideration of approximately $2.025bn in cash and stock.
Why VSE Corporation is buying Precision Aviation Group, Inc.
VSE said the deal expands its aviation aftermarket repair and distribution platform across commercial, business and general aviation, rotorcraft and defence. PAG's adjusted EBITDA margin was expected to be immediately accretive to VSE's consolidated margin, and the combined group was expected to have about 60 locations.
“This acquisition represents a pivotal moment for VSE and a major milestone in our strategy”
Deal terms and financing
The upfront price comprises $1.75bn in cash, backed by a fully committed bridge facility, and about $275m in VSE equity issued to GenNx, subject to staged lock-ups. A further earnout of up to $125m depends on PAG's 2026 adjusted EBITDA. The upfront price equates to about 13.5 times expected 2025 adjusted EBITDA including full run-rate synergies.
Regulatory approvals and timing
Closing was expected in the second quarter of 2026. VSE announced completion on 5 May 2026, funded with its February 2026 equity and tangible equity unit offerings and a new $900m term loan B maturing in 2033.
Market context
PAG has more than 1,000 employees and performs about 175,000 repairs a year for over 10,000 customers. Under GenNx360's ownership since 2018, it grew from nine to 29 repair stations through 11 add-on acquisitions, AIN reported.
