Summary
TransDigm Group Incorporated (TDG) announced on December 20, 2019, the successful divestiture of its Souriau-Sunbank Connection Technologies business to Eaton Corporation plc for approximately $920 million. This divestiture follows TransDigm's acquisition of Esterline Technologies Corporation earlier in 2019, indicating a strategic move to streamline its portfolio. The proceeds from this sale are substantial and provide immediate capital to the company. In conjunction with the divestiture, TransDigm's Board of Directors has authorized a significant special cash dividend of $32.50 per outstanding share of common stock. This dividend, with a record date of December 30, 2019, and a payment date of January 7, 2020, represents a direct return of capital to shareholders. Investors should note this significant cash return, which reflects the company's ability to generate value and efficiently deploy capital.
Key Highlights
- 1Divestiture of Souriau-Sunbank Connection Technologies completed for approximately $920 million.
- 2Souriau-Sunbank was acquired as part of the Esterline Technologies Corporation acquisition in March 2019.
- 3Board of Directors authorized a special cash dividend of $32.50 per common share.
- 4Special dividend payment date is January 7, 2020, with a record date of December 30, 2019.
- 5Dividend represents a direct return of capital to shareholders, funded in part by the divestiture proceeds.
- 6The information is furnished and not deemed 'filed' for Section 18 purposes.