VSE Corporation completed a $1.15 billion public offering that includes 3,989,362 shares of common stock priced at $188.00 each and 8,000,000 tangible equity units priced at $5.75 each. The offering is expected to generate net proceeds of about $1.11 billion, rising to $1.28 billion if the underwriters exercise their full option.
Each tangible equity unit consists of a prepaid stock purchase contract and a senior amortizing note due February 2029. The contracts settle for between 0.2171 and 0.2660 shares of VSE common stock, while the notes carry a 5.93 % annual interest rate and make quarterly cash payments of $0.72 per note.
Proceeds will be used primarily to fund the $2.025 billion acquisition of Precision Aviation Group (PAG), which includes $1.75 billion in cash, $275 million in equity, and up to $125 million in contingent earnout. The deal is expected to generate roughly $15 million in annual synergies and expands VSE’s MRO footprint, parts and services portfolio, and customer base across commercial, business, general aviation, rotorcraft, and defense markets.
VSE’s recent financial performance supports the capital raise. In Q3 2025 the company reported EPS of $0.99 and revenue of $282.91 million, a 38.9 % year‑over‑year increase. In Q1 2025 revenue was $256 million and GAAP EPS was $0.67, both reflecting strong demand in core segments and disciplined cost management.
CEO John Cuomo said the PAG acquisition is an “exceptional strategic fit” that will add differentiated parts and services, a best‑in‑class sales organization, and deep technical expertise. He added that the deal will help VSE become a scaled, higher‑margin aftermarket platform and that the equity offering provides the financial flexibility needed to execute the acquisition and pursue additional growth opportunities.
The $2.025 billion PAG transaction values the company at roughly 1.0× revenue and 4.5× EBITDA, underscoring the premium VSE is willing to pay for complementary capabilities. The acquisition is expected to double VSE’s global footprint and position the company as a leading player in the consolidating aviation aftermarket sector.
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