Summary
TransDigm Group Incorporated (TDG) announced on September 27, 2010, that it has entered into a definitive agreement to acquire McKechnie Aerospace Holdings Inc. for approximately $1.27 billion in cash, on a cash-free, debt-free basis. This acquisition is a significant strategic move, as McKechnie is a privately-owned supplier of aerospace products with seven operating units serving primarily the commercial aerospace markets in the U.S. and Europe. The transaction is expected to be financed primarily through a combination of senior and subordinated debt. The acquisition is anticipated to close before the end of the calendar year, pending regulatory approvals and customary closing conditions. Investors should monitor the progress of regulatory approvals and the financing details as this acquisition represents a substantial expansion for TransDigm.
Key Highlights
- 1Definitive agreement signed to acquire McKechnie Aerospace Holdings Inc. for approximately $1.27 billion in cash.
- 2McKechnie Aerospace Holdings Inc. is a privately-owned supplier of innovative aerospace products.
- 3McKechnie operates seven major units in the U.S. and Europe, primarily serving commercial aerospace markets.
- 4The acquisition is structured on a cash-free, debt-free basis.
- 5TransDigm plans to finance the acquisition primarily through senior and subordinated debt.
- 6The deal is expected to close before the end of the calendar year 2010.
- 7Closing is subject to regulatory approvals and customary closing conditions.