Loar Holdings Expands Aerospace Portfolio with $250 Million Acquisition of Harper Engineering

2026-01-22 companies

New York, Thursday, 22 January 2026.
Loar finalized this $250 million cash deal today, securing key aircraft interior technologies and projecting approximately $30 million in tax benefits from the strategic transaction.

Strategic Integration and Market Position

Loar Holdings Inc. (NYSE: LOAR) officially closed the acquisition of Harper Engineering Company today, January 22, 2026, for a purchase price of $250 million in cash [1][2]. The move is designed to integrate Harper’s specialized manufacturing capabilities into Loar’s existing operations, specifically targeting the commercial aerospace sector where Harper holds established positions on in-production aircraft [1][5]. Dirkson Charles, CEO of Loar, emphasized that Harper’s “well-established line-fit positions” will allow the company to capitalize on the anticipated growth in commercial build rates [1][2]. Harper, which was founded in 1968, employs approximately 85 people across two facilities in the Seattle, Washington area and is known for its proprietary latching and securing mechanisms [1][3].

Financial Implications and Funding

To fund the transaction, Loar utilized a combination of cash on hand and additional borrowings available under its existing credit agreement [1][2]. Management anticipates that the structure of the deal will generate significant fiscal advantages, projecting approximately $30 million in tax benefits [1][3]. This acquisition follows a pattern of aggressive expansion for Loar; just weeks prior, on December 26, 2025, the company completed the purchase of LMB Fans & Motors, a deal valued at €367 million plus assumed debt [2][6]. Ideally, the combination of these assets will bolster Loar’s product offerings in high-performance fans and motors alongside its new interior capabilities [2].

Market Performance and Outlook

This acquisition occurs against a backdrop of strong financial performance for Loar, which reported record sales in the third quarter of 2025 and net income of $19 million [2]. Looking ahead, Loar has projected full-year 2026 net sales to range between $540 million and $550 million [6]. Despite these operational gains, Loar’s stock closed recently at $73.88, which is notably below its 52-week high of $99.67 [3]. Investment analysts, however, remain optimistic; Goldman Sachs initiated coverage in late 2025 with a “Buy” rating and a price target of $91, characterizing the company as a high-quality compounder in the aerospace aftermarket space [2][6].

Sources

Mergers Acquisitions Aerospace Defense