New york: GenNx360 Capital Partners, a private equity firm based in New York, has announced the sale of its portfolio company, Precision Aviation Group (PAG), to VSE Corporation in a substantial transaction valued at approximately US$2.025 billion, comprising both cash and equity.

According to BERNAMA News Agency, the transaction involves US$1.75 billion in cash and roughly US$275 million in equity issued to GenNx360. Additionally, there is an earnout potential of up to US$125 million contingent upon achieving performance targets by 2026. This acquisition is expected to boost VSE's revenue by around 50 per cent on a pro forma basis by 2025 and is projected to enhance consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins immediately.

GenNx360's involvement transformed PAG from a regional operator into a global aviation aftermarket platform, concentrating on engines, avionics, components, and proprietary repair solutions. Under GenNx360's ownership, PAG expanded significantly, increasing from nine repair stations to 29 worldwide, with a presence in North America, Europe, Australia, and Brazil. The firm pursued an aggressive buy-and-build strategy, completing 11 add-on acquisitions while also achieving growth through new customer engagements and strategic partnerships.

Founded in 1996 and headquartered in Atlanta, PAG offers comprehensive aviation maintenance, repair, and overhaul (MRO) services, along with distribution and supply chain solutions for commercial, business, general aviation, rotorcraft, and defense markets. PAG operates 29 global locations, employs over 1,000 individuals, and completes more than 175,000 repairs annually.