Feb. 23--AAR said Monday it agreed to sell its Telair Cargo subsidiaries for $725 million to TransDigm Group, a Cleveland-based maker of aircraft parts.
AAR also put up for sale its precision-systems manufacturing business, as the Wood Dale-based aerospace company focuses more on services, not production.
"These transactions are an important strategic step positioning AAR as a pure-play, industry-leading global aviation services company and will allow us to focus our attention where we see the best opportunities for the company," David Storch, AAR's chairman and chief executive officer, said in a statement.
The company expects to record a pretax gain of about $200 million from the sale of the Telair businesses, which manufacture cargo-handling equipment. The deal is expected to close by May 31.
But AAR said it will report a roughly $40 million charge against third-quarter earnings for the disposition of the precision-systems unit. The company also said third-quarter earnings will be lower than expected because of decreased revenue from its airlift operations and higher costs.
asachdev@tribpub.com
