In a move likened by executives to adding a new engine mid-flight, aviation services provider VSE Corp. has agreed to acquire Precision Aviation Group Inc. in a transaction valued at up to $2.15 billion, the companies announced Thursday.

The VSE $2B Precision Aviation Deal positions the Florida-based buyer to significantly expand its footprint in the global aviation aftermarket, blending scale, technical depth and a broader customer reach.

Cash, Equity and Earnouts Fuel the Transaction

Miramar, Florida-based VSE said it will purchase Atlanta-based Precision Aviation Group, known as PAG, from private equity owner GenNx360 Capital Partners for $1.75 billion in cash and roughly $275 million in equity.

The agreement also includes as much as $125 million in additional earnout payments tied to PAG’s performance in 2026, pushing the total deal value to $2.15 billion.

VSE said the cash portion of the deal will be financed through a fully committed bridge facility.

Closing Targeted for 2026

The companies expect the transaction to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.

Jones Day is advising VSE on the deal, while Winston & Strawn LLP is representing GenNx360 Capital Partners.

A Global Aviation Services Platform

Precision Aviation Group provides maintenance, repair and overhaul services, parts distribution and supply chain support across commercial aviation, business and general aviation, rotorcraft and defense markets.

PAG operates 29 locations worldwide, employs more than 1,000 people and serves over 10,000 customers. The company completes more than 175,000 repairs each year and expects to generate approximately $615 million in adjusted revenue for the fiscal year ending Dec. 31, 2025, according to VSE.

Following the acquisition, the combined company is expected to operate about 60 locations globally.

Executives Call Deal Transformational

“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,” VSE President and CEO John Cuomo said in a statement.

Cuomo said the deal is expected to significantly expand VSE’s scale, increase its proprietary solutions content and reinforce its role as a mission-critical partner for aviation operators around the world.

PAG Chief Executive David Mast echoed that sentiment, calling the transaction an important next chapter for the company.

“We have built a reputation for customer responsiveness, expansive technical capabilities and dependable support for operators worldwide,” Mast said. “VSE shares our commitment to technical excellence, operational discipline and world-class customer service.”

Private Equity Rolls Forward

GenNx360 Capital Partners said it will roll over a portion of its equity into the combined company.

“We are incredibly proud of the exceptional platform we have built at PAG and believe VSE is the ideal strategic partner to accelerate its next stage of growth,” said Pratik Rajeevan, a principal at GenNx360.

Revenue Boost and Synergies Ahead

VSE said the acquisition is expected to lift its aviation revenue by about 50% on a pro forma basis for full-year 2025. The company also anticipates generating more than $15 million in annualized synergies over the next few years through cross-selling opportunities, operational efficiencies and procurement savings.

As the VSE $2B Precision Aviation Deal moves toward closing, the transaction signals a consolidation push in the aviation aftermarket, where scale and reliability are increasingly the currency of survival.