Summary
TransDigm Group Inc. (TDG) announced on March 14, 2023, a definitive agreement to acquire Calspan Corporation for approximately $725 million in cash. Calspan is a significant player in the aerospace and defense industry, specializing in highly engineered testing and technology development services. This strategic acquisition is expected to bolster TransDigm's capabilities, particularly in aftermarket-focused development activities, leveraging Calspan's state-of-the-art transonic wind tunnel. The acquisition is anticipated to close within TransDigm's fiscal year 2023, subject to regulatory approvals and standard closing conditions. The transaction is set to be financed using existing cash on hand, indicating TransDigm's strong liquidity position. Calspan is projected to generate approximately $200 million in revenue for the calendar year 2023, representing a substantial addition to TransDigm's revenue base and potentially enhancing its aftermarket segment.
Key Highlights
- 1TransDigm Group Inc. to acquire Calspan Corporation for approximately $725 million in cash.
- 2Calspan Corporation is a leading independent provider of testing and technology development services for the aerospace & defense industry.
- 3Acquisition strengthens TransDigm's position in aftermarket-focused development, including commercial and defense aerospace.
- 4Calspan operates seven primary facilities and possesses a state-of-the-art transonic wind tunnel.
- 5Calspan is expected to generate approximately $200 million in revenue for calendar year 2023.
- 6The acquisition is expected to close during TransDigm's fiscal year 2023.
- 7The transaction will be financed through existing cash on hand.