In a move to expand its fastest growing segment, aerospace and defense services provider AAR Corp. has acquired electronic components and assemblies distributor ADI American Distributors in an $146 million all-cash transaction.

The acquisition immediately broadens AAR’s new parts distribution activity with complementary electronics product lines and extensive OEM relationships. The business will become part of AAR’s Parts Supply segment.

Founded in 1983, ADI American Distributors serves commercial and defense customers across the aerospace and defense industry. The company’s approximately 400 team members provide value-added services, including parts and assemblies, to its OEM partners. ADI serves its customers from six locations across the US, UK and India. For the trailing twelve months ended June 30, 2025, ADI generated $149 million in revenue and $15.2 million in EBITDA.

MDM’s 2Q25 M&A Report (Premium access) 

Company officials said the expansion into new electronics product lines represents a “large total addressable market with significant fragmentation and high growth opportunities,” and that AAR expects “incremental margin improvement through sales growth, operational efficiency and business optimization.”

“AAR Distribution is AAR’s fastest growing activity, averaging more than 20% organic growth in each of the last four years,” AAR Chairman, President and CEO John Holmes said in a Sept. 25 news release. “This acquisition will strengthen our offering and position us for continued future growth. We expect to leverage AAR’s broad market reach to increase ADI’s market share and expand their product offering.”