AcquisitionsMay 7, 2026, 06:57 AM
VSE Completes $2.025B Acquisition of Precision Aviation Group
AI Summary
VSE Corporation announced the completion of its acquisition of Precision Aviation Group (PAG) for approximately $2.025 billion. The deal, which closed on May 5, 2026, involved $1.75 billion in cash and $275 million in equity, with a potential additional $125 million earnout. This strategic acquisition is expected to significantly expand VSE's global footprint and repair capabilities, increasing its revenue by about 50% on a pro forma 2025 basis and immediately improving Adjusted EBITDA margins. The transaction was financed through VSE's February 2026 equity and tangible equity unit offerings, alongside a new $900 million Term Loan B facility and an upsized revolving credit facility.
Key Highlights
- VSE completed the acquisition of Precision Aviation Group (PAG) on May 5, 2026.
- The total purchase price was approximately $2.025 billion.
- Consideration included $1.75 billion in cash and $275 million in equity issued to GenNx.
- Up to an additional $125 million contingent earnout payment is based on 2026 performance.
- The transaction was funded by February 2026 equity offerings and a new $900 million Term Loan B.
- The acquisition is expected to increase VSE's revenue by approximately 50% on a pro forma 2025 basis.
- It is expected to be immediately accretive to VSE's Adjusted EBITDA margins.
- VSE's existing senior secured revolving credit facility was upsized from $400 million to $500 million.
Price Impact
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