Aviation co VSE unveils planned $1 bln raise for acquisition; shares slip

Aviation services firm VSE Corp's VSEC.O shares off 1.2% on thin premarket volume at $215.99 as it seeks capital raise for M&A

Miramar, Florida-based VSEC commences public offerings of $650 mln in stock and $350 mln 3-yr mandatory convertible tangible equity units

Co intends to use net proceeds from the offerings to partially fund acquisition of Precision Aviation Group from private equity firm GenNx360 Capital Partners in $2 bln deal announced on Thurs

If PAG acquisition is not consummated, co intends to use net proceeds for general purposes, including redeeming and repurchasing the purchase contract and amortizing note components of the units relating to a merger termination

Jefferies and RBC are joint bookrunners for the offerings

VSEC has ~23.4 mln shares outstanding for $5 bln market cap

Shares on Fri rose 0.4% to record closing high of $218.57. Stock up 26.5% to begin 2026 and has more than doubled over the past 12 months

All 9 analysts are bullish, including 4 "strong buy" ratings; median PT of $231.50 up from $208 a month ago, per LSEG data