14. Subsequent Events

Entry into a Material Definitive Agreement

On July 18, 2024, Loar Group Inc. (Loar Group), a wholly owned subsidiary of Loar Holdings Inc., entered into a purchase agreement (the Purchase Agreement) with Applied Avionics, Inc., a Texas corporation (AAI), AAI Holdings, Inc., a Delaware corporation (AAI Parent), and Shareholder Representative Services LLC, a Colorado limited liability company, solely in its capacity as the representative of AAI Parent, pursuant to which, Loar Group agreed to purchase from AAI Parent all the issued and outstanding equity interests of AAI in exchange for aggregate cash consideration of approximately $385 million, subject to certain adjustments as set forth in the Purchase Agreement. AAI Parent is owned by certain individual shareholders thereof, including certain members of AAI’s management team. Additionally, Loar Holdings Inc. agreed to guarantee the due, complete, and punctual payment of, as well as the observance, performance and discharge of all of Loar Group’s obligations under the Purchase Agreement, all on customary terms and conditions.

The transaction is expected to close shortly after receiving requisite regulatory approvals and is subject to customary closing conditions. The acquisition will be financed through additional borrowings under the Company's existing credit agreement and cash on hand.