Originally known as Fischer and Jacobs, this manufacturer was organized in Philadelphia in 1927, and was one of a number of manufacturers of small radial engines in the post-World War I era. Known as the Aircraft Engine Corporation after moving to Camden, New Jersey, the company became especially successful during World War II as the Jacobs Aircraft Engine of Pottstown, Pennsylvania.

The Jacobs seven-cylinder air-cooled radial engine, known as the Model L-5, and similar to the previous L-4, was introduced in 1936. This military version of the engine, the R-755-9, powered the following aircraft: Waco PG-3/A; Cessna AT-17A/B/C; and Cessna UC-78/A/B/C. Other military R-755 engine models powered aircraft such as the Kellett YG-1 autogiro and Stearman PT-18 primary trainer.

In the 1970s, Page Industries of Oklahoma bought all rights to Jacobs engines and, for a few years, manufactured small numbers of R-755s, including spares, and the turbocharged R-755S.