Summary
TransDigm Group Incorporated (TDG) has filed an 8-K report on February 1, 2011, detailing a significant divestiture. The company has entered into a definitive agreement to sell its fastener businesses, which include Valley-Todeco Inc. and Linread Ltd., to Alcoa, Inc. for approximately $240 million. This divestiture follows closely on the heels of TransDigm's acquisition of these businesses as part of the larger McKechnie Aerospace acquisition in December 2010. The fastener businesses are involved in the design and manufacturing of fasteners, fastening systems, and bearings, serving the commercial, military, and general aviation aircraft sectors. This sale represents a strategic move to streamline operations or potentially capitalize on recent acquisitions. Investors should monitor the closing of this transaction and any subsequent impact on TransDigm's financial performance and strategic focus.
Key Highlights
- 1TransDigm Group Inc. is selling its fastener businesses to Alcoa, Inc.
- 2The sale price for the fastener businesses is approximately $240 million.
- 3The divested businesses include Valley-Todeco Inc. (US) and Linread Ltd. (UK).
- 4These fastener businesses were recently acquired as part of the McKechnie Aerospace acquisition in December 2010.
- 5The fastener businesses design and manufacture components for commercial, military, and general aviation aircraft.
- 6The definitive agreement for the sale was dated January 28, 2011.
- 7The filing includes the Stock Purchase Agreement as an exhibit.