MRO provider and aftermarket distributor VSE Corporation has completed a $124 million acquisition of Desser Aerospace. The acquisition will drive international growth for VSE’s aviation business.
Desser Aerospace operates a variety of aftermarket distribution, MRO and parts manufacturer approval (PMA) businesses throughout the U.S., UK and Australia. Its distribution subsidiaries include Desser, Desser Australia and Watts Aviation. It holds repair station certificates from the FAA and European Union Aviation Safety Agency for its MRO businesses, which include Aero Wheel and Brake, AOG Aviation Spares and Rotable Repairs. Lastly, its PMA businesses include Cee Bailey’s, Seginus Aerospace and DAC Engineered Products.
As part of the acquisition, VSE has sold Desser’s Proprietary Solutions businesses to Loar Group, an aerospace and defense industry manufacturer and supplier, for $30 million. They include AOG Aviation Spares, DAC Engineered Products and Seginus Aerospace.
John Cuomo, president and CEO of VSE Corporation, says the acquisition is “an important step on our path to increase the company’s exposure to the high-growth, higher-margin aviation distribution and MRO markets.” He adds: “By combining Desser Aerospace’s distribution and repair capabilities with VSE Aviation’s aftermarket business, we have broadened our product and service portfolio and created a platform for geographic expansion into international markets.”
VSE’s aftermarket businesses include VSE Aviation, a distributor of OEM turbine engine parts, avionics, and landing gear components and services, and VSE Aviation Services, an MRO provider with U.S.-based repair stations in Florida, Kansas, Ohio and Washington.
VSE first announced plans to acquire Desser in early May. In an earlier statement, it said the acquisition was part of planned growth in the aviation segment. VSE noted that the acquisition would drive multiple revenue synergies, including cross-selling opportunities. It also stated that it planned to leverage its infrastructure to scale Desser’s business more quickly.
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