Summary
TransDigm Group (TDG) announced on July 21, 2019, that it has entered into a binding offer, termed the 'Put Agreement,' with Eaton Corporation PLC for the sale of its Souriau-Sunbank Connection Technologies business. This business comprises the shares of Souriau SAS, Souriau USA Inc., and Sunbank Family of Companies LLC. The transaction is structured such that after consultation with the French works council of the business, TransDigm will have the right to require Eaton to purchase these entities for approximately $920 million in cash. The divestiture is a strategic move, and the proceeds are expected to bolster TransDigm's financial flexibility. Investors should note that the transaction is subject to the execution of definitive agreements, customary closing conditions, and regulatory approvals, with an anticipated completion in the fourth calendar quarter of 2019.
Key Highlights
- 1TransDigm entered into a binding offer with Eaton Corporation PLC to sell its Souriau-Sunbank Connection Technologies business.
- 2The sale price for the Souriau-Sunbank Companies is approximately $920 million in cash.
- 3The transaction is contingent upon the completion of French works council consultations.
- 4Execution of a definitive Purchase Agreement and satisfaction of customary closing conditions are required.
- 5Receipt of necessary regulatory approvals is a condition for closing the deal.
- 6The expected closing timeframe for the transaction is the fourth calendar quarter of 2019.
- 7The divestiture represents a significant cash inflow for TransDigm.