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