Summary
TransDigm Group Incorporated (TDG) announced on September 20, 2019, the completion of the divestiture of its Esterline Interface Technology (EIT) group of businesses. This business segment was acquired earlier in 2019 as part of the larger Esterline Technologies Corporation acquisition. The sale to an affiliate of KPS Capital Partners, LP generated approximately $190 million in proceeds. This strategic divestiture appears to be a rapid move by TransDigm to streamline its portfolio and potentially monetize assets acquired in a recent, larger transaction. Investors should note that while the sale is complete, further strategic actions, such as the potential sale of Souriau-Sunbank, are mentioned in the forward-looking statements, indicating ongoing portfolio management. The company reiterates its forward-looking statement disclaimer, highlighting potential risks and uncertainties related to future events, including the completion of other anticipated divestitures.
Key Highlights
- 1Divestiture of Esterline Interface Technology (EIT) business completed on September 20, 2019.
- 2Sale generated approximately $190 million in cash proceeds.
- 3EIT was a part of the Esterline Technologies Corporation acquisition completed in March 2019.
- 4The divestiture was made to an affiliate of KPS Capital Partners, LP.
- 5The press release announcing the sale is furnished as an exhibit.
- 6Forward-looking statements indicate potential for further divestitures, specifically mentioning Souriau-Sunbank.