VSE Corporation Partners with The Loar Group to Acquire Desser Aerospace

VSE Corporation, a leading provider of aftermarket distribution and maintenance, repair and overhaul (MRO) services for air, land and sea transportation assets for commercial and government markets, has entered into a definitive agreement to acquire Desser Holding Company LLC (Desser Aerospace), a global aftermarket solutions provider of specialty distribution and MRO services. The acquisition is expected to close within the next 90 days, subject to regulatory approvals.

Founded in 1920, Desser Aerospace is the world’s largest independent distributor of aircraft tires and tubes, a leading global distributor of brakes and batteries, and a component maintenance, repair and overhaul (MRO) services provider. Desser’s global distribution and MRO operation locations in California, Tennessee, the United Kingdom, and Australia, serve a diverse and attractive aftermarket customer base across all aviation industry segments, including commercial aviation, business and general aviation, and military aftermarket customers.

This transaction fits well within the company’s recently announced strategic priorities and focus on higher-growth, higher-margin aftermarket services and solutions. As the company continues to build long-term, sustainable sources of profitable revenue, aviation will be a key driver of growth for VSE. Desser Aerospace is expected to expand and diversify the existing operations of the Aviation segment, driving continued, above-market growth. This growth will be driven by multiple revenue synergies, including cross-selling opportunities, leveraging VSE’s infrastructure to scale Desser’s business more quickly, and expanding VSE’s geographic reach into new international markets.

Coupled with the acquisition of Desser Aerospace, VSE plans to immediately sell Desser Aerospace’s Proprietary Solutions businesses to the Loar Group Inc. (Loar), a diversified manufacturer and supplier specializing in aerospace and defense components. This sale will facilitate present and future collaborative opportunities for VSE to both distribute Loar’s market-leading products to the global aftermarket and support Loar products through the Company’s MRO capabilities