Continuation vehicles (CVs) are inextricably linked to so-called trophy assets – high-performing businesses where the GP can make a case for significant further growth.

Precision Aviation Group (PAG), an aviation maintenance, repair and overhaul (MRO) specialist, fit this profile when GenNx360 Capital Partners was considering its options in 2023. The New York-based sponsor wanted to double down on a buy-and-build strategy it had been executing since 2018, including the AUD 200m enterprise value (EV) acquisition a year earlier of Australia’s PTB Group.

“The business was performing ahead of plan,” Pratik Rajeevan, a partner at the firm, told Mergermarket. “We had just completed the take-private in Australia, with multiple M&A investment opportunities lined up to further drive inorganic growth, thus explored the CV to continue expanding.”

Ultimately, by providing fresh capital to back that expansion, the USD 400m CV – backed by Neuberger Berman and Blackstone – proved a decisive step in securing GenNx360’s exit. The sale of PAG to VSE Corporation was completed in May.

Back in 2023, PAG had already completed seven add-on acquisitions, one of which was PTB. Post-CV, the Atlanta-based company completed a further four add-ons, including the acquisition of UK-based Turner Aviation last year. EBITDA approximately doubled during this period, with M&A responsible for half the increase.

“It [the CV] gave us a fresh boost of capital to continue doing our buy-and-build story,” said Rajeevan.

By 2025, inbound interest was beginning to build. Last July, PAG’s board weighed the merits of continuing with the growth plan against a sale or recapitalization. Ultimately, it opted for a sale, launching a process with financial advisors JPMorgan and Jefferies.

Engines to aircraft 

The ensuing auction culminated in an agreement signed in January 2026 for VSE to acquire PAG for approximately USD 2.025bn in cash and equity, with an additional USD 125m contingent earnout consideration. The deal valued the company at around 13.5x its 2025 expected adjusted EBITDA, according to a press release.

At the time of the sale, PAG was serving over 10,000 customers globally across the commercial, business and general aviation, rotorcraft, and defense end markets.

When GenNx360 first invested in 2018, the company operated only nine repair stations and generated low double-digit EBITDA. PAG had established positions in “foot-in-the-door” products such as hydraulics and pneumatics, but lacked exposure to next generation avionics or engines, and generated no revenue from full engine overhauls.

GenNx360’s value creation strategy focused on adding to the PAG offering on three fronts. First, it expanded the company’s technical reach, adding capability sets such as engines, avionics and auxiliary power unit (APU) services.

“Our thesis was that if the customers could trust us with engines, they could trust us with the entire aircraft,” Rajeevan said.

Second, it pursued geographic expansion. PAG’s footprint extended into Brazil, Asia-Pacific and Europe, transforming the business from a largely US-centric operator into a global platform better positioned to serve international customers.

Third, GenNx360 emphasized operational improvement. One key lever was in-sourcing work that had previously been outsourced, alongside investments in automation and process efficiency. This helped drive an uptick in profitability, with EBITDA margins pushing past 20%.

All 11 acquisitions made during the holding period aligned with at least one of these three priorities. Turner Aviation, for example, took PAG into EMEA, while the purchases of ICON Aerospace and TAG Aero in 2024 were expected to enhance the company’s avionics and engine services capabilities, as well as broaden its product and service offerings.

A logical buyer

Overall, under GenNx360’s ownership, PAG’s locations increased from nine to 29, while EBITDA jumped roughly tenfold between 2018 and 2026. Meanwhile, revenue growth was facilitated by increased wallet-share, with PAG’s sales teams able to increase their engagement with customers thanks to the added capabilities. The company was expecting USD 615m in adjusted revenue for 2025, according to the press release.

Having evolved into a diversified, global MRO platform, PAG attracted a mix of strategics and sponsors before its eventual sale to VSE. The Miramar, Florida-headquartered company is a logical buyer. Building on the 2023 acquisition of Desser Aerospace, VSE has been adding to its aviation after-market services coverage. Notably, it acquired another MRO company, Aero 3, from GenNx360 at the end of last year.

Taken together, the deals highlight sustained strategic appetite for scaled MRO assets, lending further credence to the investment thesis behind GenNx360’s interest in the sector.

“We prioritize growth and operational excellence, including add-on integrations,” Rajeevan added. “Buyers value assets with these qualities.”