VSE Corporation Expands Global Aviation Footprint with the Acquisition of Aero 3
VSE Corporation, a leading provider of aviation aftermarket distribution and maintenance solutions, announced today that it has entered into a definitive agreement to acquire GenNx/AeroRepair IntermediateCo Inc., the parent company of Aero 3, Inc. (“Aero 3”), a diversified global Maintenance, Repair and Overhaul (MRO) service provider. Aero 3, a portfolio company of GenNx360 Capital Partners, is recognized for its extensive capabilities in supporting the commercial wheel and brake aftermarket, serving a global network of aircraft operators and OEM partners.
This transaction marks another significant milestone in VSE’s long-term growth strategy, underscoring its commitment to strengthening its position in the global aviation aftermarket while enhancing its operational reach, technical expertise, and OEM-aligned capabilities.
Management Commentary
John Cuomo, President and Chief Executive Officer of VSE Corporation, expressed his enthusiasm about the acquisition, emphasizing how Aero 3 fits seamlessly into VSE’s broader vision for global aviation expansion.
“We are pleased to announce the acquisition of Aero 3, an important step in expanding our global wheel and brake aftermarket capabilities,” said Cuomo. “This acquisition aligns perfectly with our OEM-centric strategy and builds upon the success of our Desser Aerospace acquisition. Aero 3 broadens our MRO, distribution, and proprietary product offerings while extending our global footprint.”
With Aero 3’s addition, VSE significantly enhances its global presence and technical infrastructure. The integration of nine Aero 3 MRO facilities across the United States, Canada, and the United Kingdom will expand VSE’s total network to twelve strategically located wheel and brake repair facilities. This footprint will allow VSE to better serve a diverse portfolio of customers — including commercial, regional, and business aviation operators — while offering faster turnaround times and improved service proximity.
“The combination of VSE and Aero 3 establishes one of the industry’s most comprehensive global aftermarket platforms focused on aircraft wheels and brakes,” Cuomo added. “Aero 3 is led by a market-leading management team that will remain with the business and continue driving growth across the VSE Aviation Wheel and Brake Group. Together, our customer- and operations-focused strategy and growth-oriented mindset will allow us to capitalize on the expanding global wheel and brake aftermarket.”
Daniel Bell, Chief Executive Officer of Aero 3, shared similar enthusiasm about joining forces with VSE.
“Joining VSE Aviation represents an important next chapter for Aero 3,” said Bell. “Our organization has earned a global reputation for technical expertise, reliability, and trusted partnerships with OEMs and aircraft operators. Our focus on delivering integrated repair solutions aligns seamlessly with VSE’s culture of operational excellence and customer commitment. Together, we will strengthen our capabilities, accelerate expansion, and continue providing innovative, comprehensive solutions to the global aviation community.”
Echoing these sentiments, Pratik Rajeevan, Principal at GenNx360 Capital Partners, praised the partnership and the success of Aero 3 under GenNx360’s stewardship.
“We are proud to see Aero 3 join the VSE Aviation platform and confident they will continue to thrive in this next phase of growth,” Rajeevan stated. “Dan and his team have built an exceptional, customer-focused business, and it has been a pleasure partnering with them as we executed our buy-and-build strategy.”
Acquisition Overview
Founded in 1994 and headquartered in Manchester, New Hampshire, Aero 3 has established itself as a trusted name in the global aviation aftermarket. The company operates across three core business units, providing complementary and high-value services to the aviation ecosystem:
- Wheel and Brake MRO Services
Aero 3 operates nine strategically located repair and overhaul facilities in the U.S., Canada, and the U.K. These sites offer proximity to major aviation hubs, ensuring efficient logistics, superior turnaround times, and comprehensive program management services. Its reputation for reliability and speed has made Aero 3 a preferred partner for both airlines and OEMs. - OEM-Aligned Distribution
Aero 3 holds authorized distribution rights for OEM wheel and brake components, a capability that enhances VSE’s own position as a trusted OEM-aligned distributor. This strengthens VSE’s access to critical parts and its ability to offer end-to-end repair and parts support to its customers. - Proprietary Solutions and Engineering
Through advanced engineering and manufacturing capabilities, Aero 3 produces custom-designed, proprietary repair solutions and specialized aircraft components. These high-margin, differentiated products complement VSE’s portfolio and expand its presence in the premium aftermarket segment.
Aero 3 currently employs approximately 280 people and serves over 750 global customers, completing around 50,000 MRO events annually. This scale and technical capability add significant capacity and expertise to VSE’s existing aviation operations.
Strategic Rationale
The acquisition of Aero 3 represents a critical step in VSE’s strategic evolution as a comprehensive provider of aviation aftermarket services. It brings together complementary capabilities, geographic expansion, and operational synergies that are expected to create long-term value for customers and shareholders alike.
- Expanding Global Market Leadership
The deal significantly increases VSE’s presence in the global wheel and brake aftermarket, positioning the company among the largest independent MRO providers worldwide. - Synergies with Desser Aerospace Acquisition
The integration of Aero 3 builds directly on VSE’s successful 2023 acquisition of Desser Aerospace, a leader in aircraft tire distribution. Together, these businesses create a unified service platform that offers tire, wheel, and brake solutions under one umbrella. This synergy provides customers with seamless national support, combining tire repair, replacement, and MRO services for improved operational efficiency. - Expanding Global MRO Footprint
With the addition of Aero 3’s facilities, VSE’s network expands to twelve global MRO sites, located strategically near major aviation hubs in North America and Europe. This geographic reach enhances the company’s ability to deliver timely, localized support to its worldwide customer base. - Deepening OEM Partnerships
Aero 3’s established relationships with leading OEMs strengthen VSE’s strategic alignment as an OEM-focused partner. This partnership model enables closer collaboration on product development, support programs, and aftermarket strategies. - Enhancing Distribution and Supply Chain Strength
The acquisition adds an authorized OEM distribution business to VSE’s portfolio, allowing the company to provide integrated repair and parts solutions—a one-stop-shop approach increasingly valued by global airlines and operators. - Accelerating Proprietary Product Growth
By integrating Aero 3’s proprietary repair solutions and in-house engineering expertise, VSE gains enhanced exposure to high-margin, intellectual property-driven products. This diversification supports stronger profitability and long-term innovation potential. - Leadership Continuity and Expertise
The existing Aero 3 management team, led by Daniel Bell, will remain in place and continue to lead the business under the VSE Aviation Wheel and Brake Group. Their technical acumen and customer-centric approach will play a key role in driving continued operational excellence and growth across VSE’s expanded platform.
Financial Highlights and Transaction Terms
The transaction involves a total cash consideration of $350 million, subject to customary working capital adjustments. The acquisition is expected to close in the fourth quarter of 2025, pending regulatory approvals and standard closing conditions.
Aero 3 reported approximately $120 million in revenue during the twelve-month period ending August 2025, with Adjusted EBITDA margins exceeding 20%. On a pro forma basis, the integration of Aero 3 is projected to enhance VSE’s consolidated Adjusted EBITDA margin by more than 50 basis points for the current fiscal year.
The acquisition will be financed through a combination of anticipated equity proceeds and/or borrowings under VSE’s existing credit facility, reflecting the company’s balanced approach to growth investment and capital structure management.
A New Chapter in VSE’s Aviation Growth Story
With this acquisition, VSE Corporation continues its transformation into a global leader in aviation aftermarket services. The addition of Aero 3’s world-class MRO infrastructure, technical expertise, and proprietary engineering capabilities reinforces VSE’s ability to deliver value-driven, end-to-end solutions for aircraft operators and OEM partners worldwide.
By uniting Desser Aerospace’s tire expertise with Aero 3’s wheel and brake specialization, VSE is now positioned to offer one of the industry’s most comprehensive aftermarket service platforms — one that is built on reliability, efficiency, and innovation.
“This acquisition is more than just an expansion; it’s a strategic evolution of our capabilities,” Cuomo concluded. “We’re building a platform that not only meets today’s aviation needs but anticipates tomorrow’s challenges, creating sustainable value for our customers, employees, and shareholders alike.”
VSE Corporation is a leading provider of aftermarket distribution and repair services for the aviation industry, supporting commercial, business, and general aviation operators worldwide. The company’s solutions encompass parts distribution, MRO services, supply chain management, and technical support designed to enhance operational performance and reliability.
Founded in 1994, Aero 3, Inc. is a global MRO service provider specializing in aircraft wheel and brake systems. With facilities in the U.S., Canada, and the U.K., the company serves more than 750 customers globally, offering integrated repair, engineering, and proprietary product solutions.This release may contain forward-looking statements regarding future events and the expected financial impact of the acquisition. Actual results may differ materially due to risks and uncertainties inherent in the aviation industry and market conditions.