VSE Corporation has agreed to acquire Precision Aviation Group in a $2.03bn transaction, delivering a major exit for private equity firm GenNx360 Capital Partners and creating one of the largest independent aviation aftermarket platforms globally.

Under the terms of the agreement, VSE will pay about $1.75bn in cash and issue roughly $275m of equity to GenNx360, which will retain a meaningful stake in the combined group. The deal also includes up to $125m of additional earnout consideration linked to Precision Aviation Group’s 2026 adjusted EBITDA performance.

Founded in 1996, Precision Aviation Group operates 29 locations worldwide and provides maintenance, repair, and overhaul services, parts distribution, and supply-chain solutions across commercial aviation, business and general aviation, rotorcraft, and defence markets. The business expects to generate about $615m in adjusted revenue in 2025.

VSE said the acquisition will expand its scale and technical capabilities across high-margin, mission-critical aviation aftermarket services. On a pro forma basis, the transaction is expected to lift VSE’s full-year 2025 aviation revenue by about 50% and support consolidated adjusted EBITDA margins above 20% over the coming years.

“This acquisition represents a pivotal moment for VSE and a major milestone in our strategy to build a scaled, differentiated, higher-margin aviation aftermarket platform,” said John Cuomo, president and chief executive officer of VSE Corporation.

GenNx360 said the transaction reflects the progress made during its ownership period. “Our significant equity rollover reflects our conviction in PAG’s momentum and in VSE’s ability to scale the platform,” said Pratik Rajeevan, principal at GenNx360 Capital Partners.

The acquisition is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.

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