Global deal-making has suffered since the start of the year as potential acquirers grapple with uncertain outlooks resulting from erratic U.S. trade and tariff policies.
The commercial aviation aftermarket is no exception, although mergers and acquisitions (M&A) are still occurring where buyers can minimize risk.
Research by consultancy Accenture shows 52 MRO-related M&A deals in the first half of 2025, with most of these led by independent MRO players. Often, these focused on horizontal integration in areas like component and engine MRO. Many of the buyers are U.S.-based, such as VSE Corporation, which acquired Desser Aerospace, Turbine Controls and Kellstrom Aerospace across an 18-month shopping spree culminating in Kellstrom’s purchase for $200 million in December 2024.
Another consultancy, Bain & Co, expects to see vertical and horizontal integration moving forward. It points to recent acquisitions by Airbus and Boeing of tier one suppliers to bolster their supply chains and deals targeting capabilities on new-technology equipment.
“There are broad attempts underway to reshape portfolios, on both the new equipment side and the aftermarket side, to maximize exposure to the growing next generation platforms and position for future new programs,” says Jim Harris, a partner and co-head of the consultancy’s global aerospace practice.
And while most buyers this year have been independent MRO companies, private equity remains an important source of capital.
Private equity-led deals accounted for almost a fifth of M&A activity in the MRO sector in the first half of 2025, according to Accenture.
The consultancy notes that private equity firms lean toward segments like modifications, test systems and components, which offer predictable and recurring repair volumes alongside clear scaling opportunities.
Examples over the past year have included Bain Capital’s minority investment in Panama-based MRO Holdings, HIG Capital’s investment in Florida-based maintenance provider STS Aviation and Greenbriar Equity’s purchase of U.S. MRO provider Sunvair. There has also been interest in the aftermarket from giant investment firm Apollo Global, which in July 2023 made a second foray into Air France-KLM’s maintenance and spares inventory: A year after investing €500 million ($586 million) into the airline’s spare engines in 2022, Apollo put another €500 million into an Air France affiliate owning a pool of components.
Stay tuned to the upcoming August digital issue of Inside MRO for more on aftermarket M&A trends.
Related Content
