RADNOR,
Pa., March 1, 2024 /PRNewswire/ -- Triumph
Group, Inc. (NYSE: TGI) ("TRIUMPH" or the "Company") announced today
that it has completed the sale of its Product Support business to
AAR CORP. (NYSE: AIR). The transaction is valued at
$725 million, and the net after-tax
proceeds are expected to be approximately $700 million, which will primarily be used for
debt reduction.
The Product Support business is an industry leader in the
Maintenance, Repair and Overhaul (MRO) of structures and
airframe and engine accessories, servicing both the commercial and
military aftermarkets across five primary locations.
"We are pleased to complete this transformative divestiture
which delivers immediate and substantial value to TRIUMPH and our stakeholders. This transaction
enables TRIUMPH to greatly
accelerate our deleveraging progress while placing our third-party
Product Support business with a market-leading MRO company that has
a proven track record of customer support," said Dan Crowley, TRIUMPH's chairman, president, and chief
executive officer. "By strengthening our balance sheet and focusing
on our OEM component, spares and IP-based aftermarket
business, TRIUMPH will further
improve its capacity to win and expects to profitably grow in the
expanding markets we serve."
Upon completion of the transaction, TRIUMPH will advance in aerospace and its
adjacent markets as a value-added and IP-based business. The
Systems & Support segment will consist of three pure play
engineered systems components and aftermarket companies focused on
Actuation Products and Services, Systems Electronics and Controls,
and Geared Solutions. Together with the Interiors segment,
TRIUMPH now has 21 sites and
approximately 4,500 employees, and over 60% of the Company's
products and services will be based on TRIUMPH intellectual property and 90% supplied
on a sole-sourced basis.
About TRIUMPH
TRIUMPH, headquartered in
Radnor, Pennsylvania, designs,
develops, manufactures, repairs and overhauls a broad portfolio of
aerospace and defense systems and components. The company serves
the global aviation industry, including original equipment
manufacturers and the full spectrum of military and commercial
aircraft operators.
More information about TRIUMPH
can be found on the Company's website at triumphgroup.com.
Forward Looking Statements
Statements in this release which are not historical facts are
forward-looking statements under the provisions of the Private
Securities Litigation Reform Act of 1995, including statements of
expectations of or assumptions about financial and operational
performance, revenues, earnings per share, cash flow or use, cost
savings, operational efficiencies and organizational restructurings
and our evaluation of potential adjustments to reported amounts, as
described above. Forward-looking statements may also be identified
because they contain words such as "anticipate," "believe,"
"continue," "could,'' "estimate," "expect," "intend," "may,"
"might," "plan," "project," "seek," "should," "target," "will," or
similar expressions and the negatives of those terms. All
forward-looking statements involve risks and uncertainties which
could affect the Company's actual results and could cause its
actual results to differ materially from those expressed in any
forward-looking statements made by, or on behalf of, the Company.
Such risks and uncertainties include, without limitation the
inability to increase the Company's profitability and growth,
adequately deleverage its business, strengthen its balance sheet
and win new business. Further information regarding the important
factors that could cause actual results to differ from projected
results can be found in Triumph Group's reports filed with the SEC,
including our Annual Report on Form 10-K for the fiscal year ended
March 31, 2023.
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SOURCE Triumph Group