Summary
TransDigm Group Incorporated (TDG) announced on July 28, 2015, its definitive agreement to acquire PneuDraulics, Inc. for approximately $325 million in cash. This acquisition is strategically significant as PneuDraulics specializes in proprietary, highly engineered aerospace pneumatic and hydraulic components and sub-systems, serving various market segments including commercial transport, regional, business jet, and military applications. Of note to investors, the purchase price includes an estimated $107 million in tax benefits that TransDigm expects to realize over a 15-year period starting in 2015. The company intends to finance this acquisition using its existing cash on hand, indicating a strong liquidity position. The press release announcing this agreement is attached as an exhibit to the filing.
Key Highlights
- 1TransDigm Group Inc. entered into a definitive agreement to acquire PneuDraulics, Inc.
- 2The acquisition price is approximately $325 million in cash.
- 3The deal includes approximately $107 million in expected tax benefits over 15 years.
- 4PneuDraulics manufactures proprietary aerospace pneumatic and hydraulic components.
- 5The acquired company serves commercial transport, regional, business jet, and military aerospace sectors.
- 6TransDigm plans to fund the acquisition using existing cash reserves.
- 7The announcement was made via a press release filed with the 8-K.