AAR agreed to sell its Telair Cargo Group to TransDigm for $725 million in cash, subject to adjustments. The Telair Cargo Group comprises Telair International, Telair U.S. and Nordisk Aviation Products. AAR will report its Telair Cargo Group as discontinued operations beginning in the third quarter of FY2015. The sale is expected to close in the quarter ending May 31, 2015, subject to regulatory approval. When the sale closes, AAR expects to report a pre-tax gain of approximately $200 million after expenses and fees.

AAR further announced its intention to sell its unprofitable Precision Systems Manufacturing business and will report it as a discontinued operation and record an impairment charge of approximately $40 million in the third quarter of FY2015.

“AAR is selling Telair Cargo Group and Precision Systems Manufacturing so we can focus our attention and resources on global aviation services for commercial and defense in four major areas: MRO/component repair; supply chain/parts management and distribution; expeditionary airlift; and mobility products. When AAR's transition is complete, there won't be any other independent aviation services provider of our size and scale worldwide. We are uniquely positioned to capitalize on the financial stability of airlines and the long-term outsourcing trend in aftermarket services,” a representative for the company told AIN.