Aircraft components manufacturer TransDigm has signed a deal to acquire US-based PneuDraulics for $325m in cash.
Headquartered in California, PneuDraulics produces aerospace pneumatic and hydraulic components, and sub-systems for commercial transport, regional, business jet and military aircraft. It employs approximately 275 people.
The company’s aftermarket segment represents around 35% of its revenues, while commercial aerospace operations contribute 85%.
With this acquisition, TransDigm will be able to expand its offerings to various platforms, including Boeing 787 and Airbus A350.
“TransDigm will be able to expand its offerings to various platforms, including Boeing 787 and Airbus A350.”
TransDigm plans to finance the acquisition using existing cash at hand. The purchase price includes $107m of tax benefits that TransDigm is expected to receive over the next 15 years.
TransDigm chairman and CEO Nicholas Howley said: “PneuDraulics is a long-standing manufacturer of proprietary, sole-source products with established positions on a number of high-use platforms, strong aftermarket content and an outstanding reputation.
“As with all TransDigm acquisitions, we see opportunities for significant value creation.”
Subject to regulatory approvals and customary closing conditions, the transaction is expected to be completed by the end of the year.
The latest acquisition follows TransDigm’s purchase of aerospace business of Pexco for $496m in May, and Franke Aquarotter in March.
TransDigm’s product portfolio includes mechanical / electro-mechanical actuators and controls, ignition systems and engine technology, specialised pumps and valves, power conditioning devices, engineered latching and locking devices, rods and locking devices.