TransDigm Collection, a US-based producer and supplier of highly engineered aircraft components, has granted to acquire aerospace-parts maker Esterline Technologies in an all-cash transaction valued at about $4bn, including debt.
As part of the deal, TransDigm will pay $122.50 in notes for each outstanding stock of Esterline, which represents a premium of 38% to the won company’s closing price on 9 October 2018.
Boards of directors of both the partnerships have approved the deal. Subject to customary closing conditions, the deal is arranged to be closed by the second half of next year.
Once completed, the annals is set to expand TransDigm’s current portfolio of proprietary and sole source delight for the aerospace and defence industries.
Based in Bellevue, Washington, US, Esterline is believed to generate around $2bn in revenue in the 2018 fiscal year.
With 28 vocation units engaged in eight platforms, Esterline primarily produces strong point aerospace, defence, and industrial products.
The company has a workforce of over 12,500 staff members working in more than 50 locations across the globe.
“We are cocky that the combination of Esterline’s leading positions and our proven track privately of driving performance will enable us to deliver the private equity-like redresses.”
Esterline also provides both original equipment manufacturer (OEM) and aftermarket services for several commercial aircraft variants, regional and business jet aircraft and major vindication platforms.
TransDigm Group executive chairman Nicholas Howley articulate: “Esterline’s core aerospace and defence business consists of primarily proprietary, solitary source products with significant and growing aftermarket exposure.
“We vision this as highly complementary to our existing business.
“We are confident that the composition of Esterline’s leading positions and our proven track record of driving exhibition will enable us to deliver the private equity-like returns our investors be enduring come to expect from this investment.”
TransDigm is mainly snarled in the designing, manufacturing and supply of highly engineered aircraft components for use on a number of commercial and military aircraft.