AIR - Why Shares of AAR Were Up Today
Shares of AAR (NYSE: AIR) climbed more than 10% on Monday after the aerospace maintenance and parts distribution company announced a divestiture. Selling business units is not easy during a pandemic, but AAR was able to get a deal done.
On Monday morning, AAR said it has entered into an agreement to sell its aerospace composite manufacturing business to an affiliate of Architect Equity. The unit to be sold designs, fabricates, and assembles products for commercial aerospace and defense customers.
Terms of the deal were not disclosed, but AAR said the composites business was unprofitable in fiscal 2020. The business to be sold employs about 150 people at locations in Florida and California.