CLEVELAND, Nov. 9, 2023 /PRNewswire/ -- TransDigm Group
Incorporated (NYSE: TDG) today announced it has entered into a
definitive agreement to acquire the Electron Device Business ("the
Company") of Communications & Power Industries, a portfolio
company of TJC, L.P., for approximately $1.385 billion in cash.
CPI's Electron Device Business is a leading global manufacturer
of electronic components and subsystems primarily serving the
aerospace and defense market. The Company's products are
highly-engineered, proprietary components with significant
aftermarket content and a strong presence across major aerospace
and defense platforms. Approximately 70% of its revenue is
derived from the aftermarket and nearly all of its revenue is
generated from proprietary products. CPI's Electron Device
Business generated approximately $300
million in revenue for its fiscal year ended September 30, 2023. The Company has
manufacturing locations in Palo Alto,
California; Beverly,
Massachusetts; Middlesex,
UK; and Woodland,
California. The Company employs approximately 900
people.
Kevin Stein, TransDigm's
President and Chief Executive Officer, stated, "We are excited
about the acquisition of the Electron Device Business of CPI.
This business fits well with our long-standing strategy.
The vast majority of the Company's revenues come from highly
engineered, proprietary products with substantial aftermarket
content. The Company has established positions across a
diverse range of new and existing platforms within the broader
aerospace and defense industry. As with all TransDigm
acquisitions, we expect this acquisition to create equity value
in-line with our long-term private equity-like return
objectives."
The acquisition, which is expected to close by the end of
TransDigm's third fiscal quarter of 2024, is subject to regulatory
approvals in the United States and
United Kingdom and customary
closing conditions. The acquisition is expected to be
financed through existing cash on hand as well as new long-term
debt.
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a
leading global designer, producer and supplier of highly engineered
aircraft components for use on nearly all commercial and military
aircraft in service today. Major product offerings, substantially
all of which are ultimately provided to end-users in the aerospace
industry, include mechanical/electro-mechanical actuators and
controls, ignition systems and engine technology, specialized pumps
and valves, power conditioning devices, specialized AC/DC electric
motors and generators, batteries and chargers, engineered latching
and locking devices, engineered rods, engineered connectors and
elastomer sealing solutions, databus and power controls, cockpit
security components and systems, specialized and advanced cockpit
displays, engineered audio, radio and antenna systems, specialized
lavatory components, seat belts and safety restraints, engineered
and customized interior surfaces and related components, advanced
sensor products, switches and relay panels, thermal protection and
insulation, lighting and control technology, parachutes, high
performance hoists, winches and lifting devices, and cargo loading,
handling and delivery systems and specialized flight, wind tunnel
and jet engine testing services and equipment.
Forward-Looking Statements
Statements in this press release that are not historical facts
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as "believe,"
"may," "will," "should," "expect," "intend," "plan," "predict,"
"anticipate," "estimate," or "continue" and other words and terms
of similar meaning may identify forward-looking statements. All
forward-looking statements involve risks and uncertainties that
could cause TransDigm Group's actual results to differ materially
from those expressed or implied in any forward-looking statements
made by, or on behalf of, TransDigm Group. These risks and
uncertainties include but are not limited to: the sensitivity of
our business to the number of flight hours that our customers'
planes spend aloft and our customers' profitability, both of which
are affected by general economic conditions; supply chain
constraints; increases in raw material costs, taxes and labor costs
that cannot be recovered in product pricing; failure to complete or
successfully integrate acquisitions; our indebtedness; current and
future geopolitical or other worldwide events, including, without
limitation, wars or conflicts and public health crises;
cybersecurity threats; risks related to the transition or physical
impacts of climate change and other natural disasters or meeting
sustainability-related voluntary goals or regulatory requirements;
our reliance on certain customers; the
United States ("U.S.") defense budget and risks associated
with being a government supplier including government audits and
investigations; failure to maintain government or industry
approvals; risks related to changes in laws and regulations,
including increases in compliance costs; potential environmental
liabilities; liabilities arising in connection with litigation;
risks and costs associated with our international sales and
operations; and other factors. Further information regarding the
important factors that could cause actual results to differ
materially from projected results can be found in TransDigm Group's
most recent Annual Report on Form 10-K and other reports that
TransDigm Group or its subsidiaries have filed with the Securities
and Exchange Commission. Except as required by law, TransDigm Group
undertakes no obligation to revise or update the forward-looking
statements contained in this press release.
Contact:
Investor Relations
(216) 706-2945
ir@transdigm.com
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