VSE Corporation Advances Global Wheel and Brake Aftermarket Capability with Aero 3 Acquisition

VSE Corporation (“VSE”), a provider of aviation aftermarket distribution and repair services, has entered into a definitive agreement to acquire Aero 3, Inc. (“Aero 3”), the parent company of a diversified global maintenance, repair and overhaul (MRO) service provider and distributor specializing in the commercial wheel and brake aftermarket.

This acquisition is designed to extend VSE’s OEM-centric strategy in the aviation sector by incorporating Aero 3’s network of nine MRO facilities across the U.S., Canada and the U.K., thereby enabling VSE to operate a total of twelve strategically located wheel and brake repair sites globally.

Aero 3 brings three complementary business lines to VSE’s Aviation Wheel and Brake Group: wheel and brake MRO services; authorized OEM-aligned distribution of wheel and brake components; and production of proprietary, custom-designed repair solutions and manufactured components. The company, founded in 1994 and based in Manchester, New Hampshire, supports more than 750 customers worldwide and performs approximately 50,000 MRO events annually.

The strategic rationale for this acquisition aligns with key trends in the aviation aftermarket: increasing demand for integrated repair and distribution platforms; growth in OEM-aligned services; and higher value generation through proprietary solutions. Specifically, VSE highlights that the transaction: increases its exposure to the global wheel and brake aftermarket, builds on the earlier 2023 acquisition of Desser Aerospace (a tire distribution specialist), expands its global MRO footprint, deepens OEM alignment and strengthens its parts distribution and high-margin proprietary product portfolio.

Financially, VSE has committed to a cash consideration of US$350 million (subject to working capital adjustments) for Aero 3. Aero 3 generated approximately US$120 million in revenue for the twelve months ended August 2025, with adjusted EBITDA margins in excess of 20 percent. On a pro-forma basis year-to-date, the acquisition is expected to improve VSE’s consolidated adjusted EBITDA margin by more than 50 basis points. Financing is anticipated via equity issuance and/or borrowings under the company’s credit facility. The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions.

For aerospace industry stakeholders, this development signals an increased consolidation of wheel and brake MRO capabilities under a platform that blends distribution, repair and proprietary manufacturing. The linkage of tire, wheel and brake services through the VSE-Desser-Aero 3 axis may offer fleet operators an opportunity to rationalize supply-chain touchpoints and streamline lifecycle-management of high-value landing-gear components. Furthermore, VSE’s expanded footprint may enhance responsiveness in key markets across North America and Europe, and provide stronger OEM-aligned support—a critical factor in airline and business-jet procurement strategies.

VSE’s leadership affirmed their confidence in Aero 3’s management team remaining in place to drive continued growth within the combined organisation. Aero 3’s CEO described the move as a milestone in their global expansion, highlighting their reputation for technical expertise and trusted operator partnerships aligning with VSE’s operational focus.