AAR buys ADI for $146M to expand its fast-growing parts business 

AAR Corp., a major aviation services provider to airlines and defense customers, has acquired ADI American Distributors for $146 million in cash. The deal, announced on September 25, 2025, expands AAR’s parts distribution business, its fastest-growing segment. 

ADI, founded in 1983 and based in Randolph, New Jersey, supplies electronic components and assemblies to aerospace and defense customers. The company employs about 400 people and operates from six locations in the United States, United Kingdom, and India. For the 12 months ended June 30, 2025, ADI generated $149 million in revenue. 

The business will be integrated into AAR’s Parts Supply unit, which has averaged more than 20 percent annual growth in recent years. AAR Chief Executive John Holmes said the deal will enhance the company’s parts supply business and support its expansion plans.  “This acquisition will strengthen our offering and position us for continued future growth,” Holmes said. “We expect to leverage AAR’s broad market reach to increase ADI’s market share and expand their product offering.” 

The ADI acquisition is the latest in a string of moves that have reshaped AAR’s core business reach in recent years. In 2023, AAR acquired Triumph Product Support, a major provider of aircraft component repair. That purchase broadened AAR’s Repair and Engineering segment and added significant scale to its maintenance operations. In 2025, the company bought Aerostrat, a software provider that specializes in long-range maintenance planning. That deal expanded AAR’s digital services and complemented its existing Trax maintenance software subsidiary. 

The acquisitions have added new capabilities while reinforcing AAR’s traditional strengths in the aviation aftermarket. The company now organizes its activities into four main segments. Parts Supply focuses on distributing aircraft components and is AAR’s largest and most profitable unit. Repair and Engineering provides maintenance and technical support for aircraft systems. Integrated Solutions manages inventory, logistics, and maintenance programs for customers who outsource those functions. Expeditionary Services provides mobile structures, containers, and other equipment to military and humanitarian operations. 

Together, these businesses generated $2.78 billion in revenue in AAR’s 2025 fiscal year, a 20 percent increase from the year before. Parts Supply alone accounted for about $1.1 billion of that total, or roughly 40 percent of sales. The unit’s strong growth reflects steady demand for spare parts as airlines and defense operators maintain and modernize their fleets. 

AAR, headquartered in Wood Dale, Illinois, traces its history back to 1955, when it was founded as I.A. Allen Industrial. The company adopted the AAR name in the 1960s and gradually expanded into aircraft maintenance, supply chain services, and specialized military support. Today it operates in more than 20 countries and employs about 6,000 people worldwide. The company has a market capitalization of about $2.9 billion. 

AAR counts major US and international airlines among its customers, as well as the US Department of Defense and foreign military operators. The company’s distribution hubs and maintenance facilities are located across North America, Europe, and Asia, with large operations in Illinois, Florida, and Oklahoma in the United States, and support sites in the United Kingdom, Germany, and Singapore.  The post AAR buys ADI for $146M to expand its fast-growing parts business  appeared first on AeroTime.

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