VSE Corp. (VSEC), a provider of aviation aftermarket distribution and repair services, Thursday announced that it has agreed to acquire Precision Aviation Group, Inc. or PAG, a portfolio company of GenNx360 Capital Partners, for a total of around $2.025 billion in cash and equity.
Under the agreement, VSE will acquire PAG for $1.75 billion in cash and approximately $275 million of equity consideration issued to GenNx.
Additionally, the agreement includes up to $125 million in contingent earnout consideration, payable in cash or equity consideration at VSE's sole discretion, based on PAG's 2026 adjusted EBITDA performance.
The cash portion of the consideration is funded by a fully committed bridge facility and the said transaction is expected to close in the second quarter of 2026.
According to the company, the transaction is expected to significantly expand VSE's scale and enhance its engine and component service capabilities across the aviation aftermarket.
On a separate note, the company also shared its preliminary results for the fourth quarter and fiscal 2025.
It is expecting revenue of around $290 million to $304 million, operating income between around $27 million to $34 million for the fourth quarter.
For the full year, revenue is expected from around $1.1 billion to $1.15 billion and operating income between around $84 million to $91 million.
VSE plans to report its fourth quarter and full year results along with its outlook for fiscal 2026 in the following month.
In pre-market activity, VSEC shares were trading at $211.99, up 2.90% on the Nasdaq.
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