AAR Corp. has agreed to buy a majority stake in MRO Holdings, a privately held aircraft maintenance provider, for $1.8 billion, in a transaction that materially expands AAR's airframe maintenance footprint across the Americas.

The acquisition ranks among the largest consolidations in the independent airframe MRO sector in recent memory. For AAR — a Wood Dale, Illinois-based provider of aviation services, parts supply and government contracting — the deal extends a strategy of growth through acquisition in the maintenance market, where airlines have been outsourcing heavier checks amid fleet age profiles stretched by slow new-aircraft deliveries.

MRO Holdings operates airframe maintenance operations concentrated in Latin America, a region that has become central to the North American heavy-check supply chain. Shops in El Salvador, Mexico and other Central American locations have taken market share from US domestic facilities over the past decade on labor-cost grounds, and AAR itself already operates a joint venture in the region. The purchase deepens that position.

The $1.8 billion price for majority control signals confidence in sustained demand for airframe maintenance capacity. Boeing and Airbus delivery shortfalls have forced carriers to keep older 737NGs, A320ceo-family jets and widebodies flying longer than planned, driving utilization of heavy-check slots and pushing turnaround times out at independent shops across North and Central America.

For AAR, the transaction follows a period of expansion that included its acquisition of Triumph Group's product support business in 2022 for $725 million, which added component repair and distribution capabilities. The MRO Holdings deal shifts the weight of that M&A activity squarely onto airframe labor capacity — the scarcest asset in the aftermarket today.

The consolidation also carries consequences for airline customers. Fewer independent providers of scale could tighten pricing power in the heavy-check market, though AAR will face continued competition from OEM-aligned service networks and in-house capabilities at large carriers such as American Airlines and Delta Air Lines, both of which maintain their own airframe overhaul operations.

Regulatory review will be required. Antitrust authorities have shown increased willingness to scrutinize aftermarket consolidation in aerospace, and a deal combining two significant airframe maintenance providers in the Americas will likely draw examination of regional market shares in heavy maintenance capacity.

AAR has not yet disclosed the expected closing timeline or the identity of the minority holders who will retain a stake in MRO Holdings following the transaction. Financing details and the precise structure of the majority position also remain to be detailed in subsequent filings.

The deal is expected to close subject to regulatory approvals, after which AAR will integrate MRO Holdings' capacity with its existing maintenance, repair and overhaul operations serving commercial and government customers across the Americas.