BUZZ-Aviation firm VSE dips after launching stock offering for M&A

Reuters
2025/10/28
BUZZ-Aviation firm VSE dips after launching stock offering for M&A

** Shares of aviation services firm VSE Corp VSEC.O down 3.1% post-market to $174 after acquisition-related equity raise news

** Miramar, Florida-based VSEC commences stock offering to fund all or a portion of its previously announced buy of Aero 3, to support potential acquisitions

** VSEC after the bell announced acquisition of Aero 3, portfolio co of private equity firm GenNx360 Capital Partners for total cash consideration of $350 mln

** Transaction expected to close by end of 2025

** Aero 3 generated approx $120 mln of rev during trailing twelve months through Aug, with adj EBITDA in excess of 20%, according to the statement

** In addition, VSEC says Q3 rev grew 39% yr/yr to a record $282.9 mln, above consensus est. of $276.4 mln, per LSEG

** Jefferies and Morgan Stanley are joint lead bookrunners for stock offering, joined by RBC and William Blair

** With ~20.68 mln shares outstanding, VSEC has about $3.7 bln market cap

** VSEC shares on Mon fell 1.9% to close at $179.52. Stock, up 88% YTD, hit intraday record high of $186 during regular session on Mon

** All 9 analysts covering VSEC are bullish, including 4 "strong buy" ratings, their median PT is $190, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@thomsonreuters.com lance.tupper@tr.com 1-646-279-6380))

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