Summary
TransDigm Group Incorporated (TDG) announced a significant acquisition via an 8-K filing on December 2, 2009. The company, through a newly formed wholly owned subsidiary, acquired certain assets and liabilities from Dukes, Inc. and GST Industries, Inc. for approximately $96 million in cash. This transaction also includes potential future payments of up to $60 million over four years, contingent on the achievement of specific growth targets. The acquired entities are key suppliers of proprietary, highly engineered components serving critical aerospace markets, including business jets, regional jets, and military aviation, as well as commercial and military helicopters.
Key Highlights
- 1Acquisition of assets and liabilities from Dukes, Inc. and GST Industries, Inc.
- 2Initial cash consideration of approximately $96 million.
- 3Potential for up to $60 million in earn-out payments over four years based on growth targets.
- 4Target companies supply proprietary, highly engineered components for aerospace markets.
- 5Acquisition diversifies and strengthens TransDigm's product offerings in key aerospace segments.
- 6The transaction is structured through a newly formed, wholly owned subsidiary.