AAR announced it would sell cargo handling business, Telair Cargo Group, to TransDigm for a purchase price of US$725 million in cash, subject to adjustments. The Telair Cargo Group is comprised of Telair International, Telair US, and Nordisk Aviation Products.

AAR further announced its intention to sell its unprofitable Precision Systems Manufacturing business and will report it as a discontinued operation and record an impairment charge of approximately US$40 million in the third quarter of FY 2015.

“These transactions are an important strategic step positioning AAR as a pure-play global aviation services company and will allow us to focus our attention where we see the best opportunities for the Company,” said David P. Storch, chairman and chief executive officer of AAR.