VSE to Acquire Precision Aviation Group for $2.025 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Acquisition Scale: VSE announced its acquisition of Precision Aviation Group for approximately $2.025 billion in cash and equity, consisting of $1.75 billion in cash and $275 million in equity, which is expected to significantly enhance the company's market scale and competitiveness.
- Performance Incentives: The agreement includes up to $125 million in additional earnout consideration based on PAG's 2026 adjusted EBITDA performance, demonstrating VSE's confidence in future growth prospects.
- Financial Outlook Improvement: VSE expects revenue for fiscal year 2025 to range from $1.101 billion to $1.115 billion, with fourth-quarter revenue anticipated between $290 million and $304 million, reflecting substantial financial growth post-acquisition.
- Positive Market Reaction: Following the acquisition announcement, VSE's shares rose over 2% in premarket trading, indicating a favorable market perception of the deal and confidence in the company's future trajectory.
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Analyst Views on VSEC
Wall Street analysts forecast VSEC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for VSEC is 206.50 USD with a low forecast of 195.00 USD and a high forecast of 222.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 217.640
Low
195.00
Averages
206.50
High
222.00
Current: 217.640
Low
195.00
Averages
206.50
High
222.00
About VSEC
VSE Corporation is a provider of aviation distribution and repair services for the commercial and business and general aviation (BG&A) aftermarkets. The Company's aftermarket parts distribution and maintenance, repair, and overhaul (MRO) services support engine component and engine and airframe accessory part distribution and repair services for commercial and BG&A operators. The Company is an authorized distributor of OEM turbine engine parts, avionics, actuation, airframe components and tires. It specializes in repairing high-flow/high-temp pneumatics, fuel accessories, electrical accessories, avionics, engine components, engine and airframe accessories, interiors, cargo systems, and wheels and brakes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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