CLEVELAND, March 19, 2018 /PRNewswire/ -- TransDigm Group
Incorporated (NYSE: TDG) announced today that it has entered into a
definitive agreement to acquire Extant Components Group Holdings,
Inc. ("Extant"), a portfolio company of Warburg Pincus LLC, for
approximately $525 million. TransDigm
expects to finance the acquisition primarily through a combination
of cash on hand and existing availability under its revolving
credit facility.
For the fiscal year ending September
2018, Extant expects to derive 80% of its revenue from the
aftermarket, with nearly all of the revenue from proprietary and
sole source products. The revenue is derived from a mix of military
and commercial applications, with the majority of the revenue
coming from the military end market.
Located in Melbourne, Florida,
Extant employs more than 170 people and expects to generate revenue
of approximately $85 million for the
fiscal year ending September 2018. Extant provides a broad
range of proprietary aftermarket products and repair and overhaul
services to the aerospace and defense end markets. The company
exclusively licenses or acquires proprietary aftermarket-focused
products from leading aerospace and defense OEMs. Extant then
supports these products over the significant remaining useful lives
of the aircraft on which the equipment is installed. The company
currently owns or exclusively licenses in excess of 2,500
assemblies and sub-assemblies on over 70 active platforms. Extant
offers an attractive value proposition to OEMs and as a result has
an active pipeline of new product line acquisition
opportunities.
Extant's largest platforms include the F-16, AH-64, F-18, F-15,
and C-130. Commercial platforms include the King Air series, MD
900/902, B747, B757 and B777. The company also has content on key
business jet platforms such as the Bombardier Learjet family,
Cessna Citation family, and various Gulfstream aircraft.
W. Nicholas Howley, Chairman and
CEO of TransDigm, stated, "Extant has an unusual and attractive
business model, with significant opportunities for growth. This
unique model fits well with our proprietary and aftermarket-focused
value generation strategy. As usual, we anticipate attractive
private equity type returns on this acquisition."
About TransDigm
TransDigm Group Incorporated, 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, NiCad batteries and chargers, engineered latching and
locking devices, rods and locking devices, engineered connectors
and elastomers, cockpit security components and systems,
specialized cockpit displays, aircraft audio systems, specialized
lavatory components, seatbelts and safety restraints, engineered
interior surfaces and related components, lighting and control
technology, military personnel parachutes, high performance hoists,
winches and lifting devices, and cargo loading, handling and
delivery systems.
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
which could affect TransDigm's actual results and could cause its
actual results to differ materially from those expressed or implied
in any forward-looking statements made by, or on behalf of,
TransDigm. These risks and uncertainties include but are not
limited to failure to complete or successfully integrate the
acquisition; that the acquired business does not perform in
accordance with our expectations; and other factors. Further
information regarding important factors that could cause actual
results to differ materially from projected results can be found in
TransDigm's Annual Report on Form 10-K and other reports that
TransDigm or its subsidiaries have filed with the Securities and
Exchange Commission. Except as required by law, TransDigm
undertakes no obligation to revise or update the forward-looking
statements contained in this press release.
Contact:
|
Liza
Sabol
|
|
Investor
Relations
|
|
(216)
706-2945
|
|
ir@transdigm.com
|