Summary
TransDigm Group Incorporated (TDG) announced the completion of its acquisition of Skandia Inc. on July 13, 2018, for approximately $84 million, inclusive of debt assumption. Skandia is a specialized provider of engineered seating foam, fabrication, flammability testing, and acoustic solutions, primarily serving the business jet market, with annual revenues around $26 million and 70 employees. This strategic acquisition is expected to enhance TransDigm's offerings within the business jet sector, a key growth area for the company. Skandia's proprietary and sole-source products, with over half of its revenue from the aftermarket, align well with TransDigm's business model of acquiring and integrating niche, high-margin aerospace component suppliers. The integration of Skandia's established customer base across major business jet platforms like Bombardier, Cessna, Dassault, Embraer, and Gulfstream is a significant positive for TransDigm.
Key Highlights
- 1TransDigm Group acquired Skandia Inc. for approximately $84 million on July 13, 2018.
- 2Skandia is a specialized provider of engineered seating foam, fabrication, flammability testing, and acoustic solutions.
- 3The acquisition is focused on the business jet market, which represents nearly 85% of Skandia's $26 million in annual revenues.
- 4Skandia's products are largely proprietary and sole-source, with over 50% of revenues from the aftermarket.
- 5Skandia serves all major business jet platforms, including Bombardier, Cessna, Dassault, Embraer, and Gulfstream.
- 6The transaction price includes the assumption of debt.
- 7The acquisition is expected to complement TransDigm's existing product portfolio and market reach.