VSE (VSEC) Company Report

VSE Corporation is issuing 8,000,000 5.750% tangible equity units, with an option for underwriters to purchase up to 1,200,000 additional units, each with a stated amount of $50.00.
The company also issued 5.93% Senior Amortizing Notes due 2029 with an aggregate initial principal amount of $71,967,000, paying interest at 5.93% per annum and maturing on February 1, 2029.
The net proceeds from the offering were approximately $446.2 million and will be used to fund a portion of the cash consideration for the previously announced acquisition of PAG HoldCo (Precision Aviation Group).
If the PAG acquisition is not consummated by October 29, 2026, the Company may redeem the outstanding Purchase Contracts, and holders can require repurchase of their Amortizing Notes.

1 day ago

8-K

VSE Corp. Prices Common Stock Offering to Fund PAG Acquisition

VSEC

M&A

New Projects/Investments

On February 2, 2026, VSE Corporation entered into an Underwriting Agreement to sell 3,989,362 shares of its common stock at a public price of $188.00 per share.
The underwriters fully exercised their option to purchase an additional 598,404 shares.
The estimated net proceeds from the offering are approximately $830.2 million, which the company intends to use to fund a portion of the cash consideration for its previously announced acquisition of PAG HoldCo.
The offering is scheduled to close on February 4, 2026.

3 days ago

8-K

VSE Corporation Prices Upsized Public Offerings

VSEC

M&A

Debt Issuance

New Projects/Investments

VSE Corporation priced an upsized public offering of 3,989,362 shares of common stock at $188.00 per share, raising approximately $750 million, and an upsized offering of 8,000,000 tangible equity units with an aggregate stated amount of $400 million.
The offerings are expected to generate approximately $1.11 billion in net proceeds, which VSE intends to use to fund a portion of the Precision Aviation Group, Inc. (PAG) acquisition.
The common stock offering is expected to close on February 4, 2026, and the Units offering on February 5, 2026.
Each tangible equity unit is comprised of a prepaid stock purchase contract and a senior amortizing note due February 1, 2029, with the amortizing notes bearing interest at a rate of 5.93% per annum.

4 days ago

Press Release

VSE Corporation Announces Public Offerings to Fund PAG Acquisition

VSEC

M&A

Debt Issuance

New Projects/Investments

VSE Corporation has commenced concurrent public offerings of $650 million of common stock and $350 million of tangible equity units.
The net proceeds from these offerings are intended to fund a portion of the purchase price for the previously announced acquisition of Precision Aviation Group, Inc..
Each tangible equity unit will be comprised of a prepaid stock purchase contract and a senior amortizing note, both due on February 1, 2029.
The offerings are separate and not contingent on the completion of the PAG Acquisition; if the acquisition is not consummated, VSE intends to use the net proceeds for general corporate purposes.

5 days ago

Press Release

VSE Corporation Announces Acquisition of Precision Aviation Group

VSEC

M&A

Guidance Update

New Projects/Investments

VSE Corporation has entered into a transformational acquisition agreement to purchase Precision Aviation Group for approximately $2.025 billion in cash and equity consideration.
This acquisition is expected to increase VSE's estimated pro forma full year 2025 Aviation revenue by approximately 50 percent.
The company anticipates its consolidated Adjusted EBITDA margin to exceed 20 percent over the next few years and expects more than $15 million of annualized synergy opportunities.

8 days ago

Press Release

VSE Agrees to Acquire Precision Aviation Group

VSEC

M&A

Guidance Update

New Projects/Investments

VSE Corp. has agreed to acquire Precision Aviation Group for an upfront consideration of approximately $2.025 billion, consisting of $1.75 billion in cash and $275 million in equity, with potential additional contingent earnouts of up to $125 million, bringing the maximum deal value to around $2.15 billion.
The acquisition is expected to close in the second quarter of 2026 and is anticipated to create a leading, diversified aviation aftermarket platform with a clear path to over 20% EBITDA margins.
VSE also reported preliminary fiscal 2025 results, including full-year revenue of approximately $1.1 billion to $1.15 billion and full-year operating income of about $84 million to $91 million.
Following the announcement, VSE (VSEC) shares experienced a pre-market increase of about 2.90%, trading at $211.99.

Jan 29, 2026, 3:21 PM

WSJ

VSE Corporation to acquire Precision Aviation Group

VSEC

M&A

Guidance Update

VSE Corporation has entered into a definitive agreement to acquire Precision Aviation Group (PAG) for approximately $2.025 billion in cash and equity.
The acquisition is expected to significantly expand VSE’s scale and capabilities in the aviation aftermarket, with PAG projected to generate approximately $615 million of adjusted revenue for the fiscal year ended December 31, 2025.
VSE anticipates its consolidated Adjusted EBITDA margin to exceed 20% over the next few years, and the transaction is expected to close in the second quarter of 2026.
VSE also provided preliminary full year 2025 consolidated revenue estimates of ~$1,101 to ~$1,115 million and Adjusted EBITDA estimates of ~$176 to ~$184 million.

Jan 29, 2026, 2:10 PM

8-K

VSE Corporation Announces Acquisition of Precision Aviation Group and Preliminary 2025 Results

VSEC

M&A

Guidance Update

New Projects/Investments

VSE Corporation has signed a definitive agreement to acquire Precision Aviation Group (PAG) for approximately $2.025 billion in total upfront consideration, consisting of $1.75 billion in cash and $275 million in equity, with potential for up to $125 million in additional contingent earnout consideration.
This acquisition is projected to increase VSE's estimated fiscal year 2025 revenue by about 50% on a pro forma basis and is expected to drive consolidated adjusted EBITDA margins to exceed 20% over the next few years.
VSE anticipates achieving approximately $15 million in annualized synergies over the next few years through phased integration of operational and corporate support functions.
The transaction is expected to close in the second quarter of 2026.
VSE also announced preliminary full year 2025 financial results, with expected revenue between $1.101 billion and $1.115 billion and consolidated Adjusted EBITDA between $176 million and $184 million.

Jan 29, 2026, 1:00 PM

Transcript

VSE Corporation to Acquire Precision Aviation Group

VSEC

M&A

New Projects/Investments

Revenue Acceleration/Inflection

VSE Corporation has signed a definitive agreement to acquire Precision Aviation Group (PAG) for approximately $2.025 billion, consisting of $1.75 billion in cash and $275 million in equity.
This acquisition is projected to increase VSE's revenue by about 50% on a pro forma basis and aims for over 20% consolidated adjusted EBITDA margins in the coming years.
The combined company will operate 60 locations across eight countries with approximately 2,600 employees, targeting approximately $15 million in annualized synergies.
PAG reported approximately $615 million in adjusted revenue for the full year ended December 31, 2025, with adjusted EBITDA margins greater than 20%. VSE's aviation segment revenue was approximately $1.1 billion in 2025, with consolidated adjusted EBITDA margins of approximately 16.3%.

Jan 29, 2026, 1:00 PM

Transcript

VSE Corporation announces acquisition of Precision Aviation Group

VSEC

M&A

New Projects/Investments

Revenue Acceleration/Inflection

VSE Corporation announced on January 29, 2026, its plan to acquire Precision Aviation Group (PAG).
The upfront consideration for the acquisition is approximately $2.025 billion, consisting of $1.75 billion in cash and $275 million in equity, with potential for up to $125 million in contingent earnout consideration.
The transaction is expected to be immediately accretive to VSE's consolidated Adjusted EBITDA margin, which is projected to exceed 20% over the next few years, driven by over $15 million in annualized synergy opportunities.
This acquisition strengthens VSE's pure-play aviation aftermarket platform, adding complementary capabilities and scale, and is expected to increase VSE Aviation aftermarket revenue by approximately 50% in estimated FY2025.
The transaction is subject to regulatory approvals and customary closing conditions, with an expected closing in the second quarter of 2026.