TransDigm Announces Acquisition of the Simmonds Precision Products, Inc. Business of Goodrich Corporation from RTX Corporation
TransDigm Group (NYSE: TDG) has announced a definitive agreement to acquire Simmonds Precision Products from RTX Corporation (NYSE: RTX) for $765 million in cash, including tax benefits. Simmonds, based in Vergennes, Vermont, specializes in fuel & proximity sensing and structural health monitoring solutions for aerospace and defense markets.
The acquisition target generates approximately $350 million in annual revenue, with 40% derived from aftermarket sales. Simmonds employs around 900 people and is known for its highly engineered, proprietary components with significant aftermarket content and strong presence across major aerospace and defense platforms.
The transaction aligns with TransDigm's strategy of acquiring companies with proprietary products and substantial aftermarket presence. The acquisition will be financed through existing cash on hand and is subject to regulatory approvals in the United States and customary closing conditions.
TransDigm Group (NYSE: TDG) ha annunciato un accordo definitivo per acquisire Simmonds Precision Products da RTX Corporation (NYSE: RTX) per 765 milioni di dollari in contanti, inclusi benefici fiscali. Simmonds, con sede a Vergennes, Vermont, è specializzata in soluzioni di rilevamento carburante e prossimità, oltre al monitoraggio della salute strutturale per i mercati aerospaziale e della difesa.
L'obiettivo dell'acquisizione genera circa 350 milioni di dollari di ricavi annui, con il 40% derivante dalle vendite aftermarket. Simmonds impiega circa 900 persone ed è nota per i suoi componenti altamente ingegnerizzati e proprietari, con una significativa presenza aftermarket e un ruolo importante nelle principali piattaforme aerospaziali e di difesa.
L'operazione è in linea con la strategia di TransDigm di acquisire aziende con prodotti proprietari e una consistente presenza aftermarket. L'acquisizione sarà finanziata con la liquidità disponibile e sarà soggetta alle approvazioni normative negli Stati Uniti e alle consuete condizioni di chiusura.
TransDigm Group (NYSE: TDG) ha anunciado un acuerdo definitivo para adquirir Simmonds Precision Products de RTX Corporation (NYSE: RTX) por 765 millones de dólares en efectivo, incluyendo beneficios fiscales. Simmonds, con sede en Vergennes, Vermont, se especializa en soluciones de detección de combustible y proximidad, así como en monitoreo de salud estructural para los mercados aeroespacial y de defensa.
El objetivo de la adquisición genera aproximadamente 350 millones de dólares en ingresos anuales, con un 40% proveniente de ventas posventa. Simmonds emplea a alrededor de 900 personas y es conocida por sus componentes altamente diseñados y propietarios, con un contenido posventa significativo y una fuerte presencia en las principales plataformas aeroespaciales y de defensa.
La transacción está alineada con la estrategia de TransDigm de adquirir empresas con productos propietarios y una presencia posventa sustancial. La adquisición se financiará con efectivo disponible y está sujeta a aprobaciones regulatorias en Estados Unidos y condiciones habituales de cierre.
TransDigm Group (NYSE: TDG)는 RTX Corporation (NYSE: RTX)으로부터 Simmonds Precision Products를 현금 7억 6,500만 달러에 인수하기로 확정 계약을 발표했습니다. 이 금액에는 세금 혜택이 포함되어 있습니다. 버몬트주 버제네스에 본사를 둔 Simmonds는 항공우주 및 방위 시장을 위한 연료 및 근접 센서, 구조 건강 모니터링 솔루션을 전문으로 합니다.
인수 대상 회사는 연간 약 3억 5천만 달러의 매출을 창출하며, 그 중 40%가 애프터마켓 판매에서 나옵니다. Simmonds는 약 900명의 직원을 고용하고 있으며, 고도로 설계된 독점 부품과 상당한 애프터마켓 비중, 주요 항공우주 및 방위 플랫폼에서 강력한 입지로 알려져 있습니다.
이번 거래는 독점 제품과 상당한 애프터마켓 존재감을 가진 회사를 인수하는 TransDigm의 전략과 부합합니다. 인수 자금은 기존 현금으로 조달되며, 미국 내 규제 승인 및 일반적인 거래 종료 조건을 충족해야 합니다.
TransDigm Group (NYSE : TDG) a annoncé un accord définitif pour acquérir Simmonds Precision Products auprès de RTX Corporation (NYSE : RTX) pour 765 millions de dollars en espèces, incluant des avantages fiscaux. Basée à Vergennes, Vermont, Simmonds est spécialisée dans les solutions de détection de carburant et de proximité ainsi que dans la surveillance de la santé structurelle pour les marchés aérospatial et de la défense.
Cible de l’acquisition, l’entreprise génère environ 350 millions de dollars de chiffre d’affaires annuel, dont 40 % proviennent des ventes sur le marché secondaire. Simmonds emploie environ 900 personnes et est reconnue pour ses composants hautement techniques et propriétaires, avec une part significative sur le marché secondaire et une forte présence sur les principales plateformes aérospatiales et de défense.
Cette transaction s’inscrit dans la stratégie de TransDigm d’acquérir des entreprises disposant de produits propriétaires et d’une présence importante sur le marché secondaire. L’acquisition sera financée par les liquidités disponibles et est soumise aux approbations réglementaires aux États-Unis ainsi qu’aux conditions habituelles de clôture.
TransDigm Group (NYSE: TDG) hat eine endgültige Vereinbarung zur Übernahme von Simmonds Precision Products von der RTX Corporation (NYSE: RTX) für 765 Millionen US-Dollar in bar, einschließlich Steuervorteilen, bekannt gegeben. Simmonds mit Sitz in Vergennes, Vermont, ist spezialisiert auf Kraftstoff- und Näherungssensorik sowie Lösungen zur Überwachung der strukturellen Integrität für den Luft- und Raumfahrt- sowie Verteidigungsmarkt.
Das Übernahmeziel erwirtschaftet einen Jahresumsatz von etwa 350 Millionen US-Dollar, wobei 40 % aus dem Aftermarket stammen. Simmonds beschäftigt rund 900 Mitarbeiter und ist bekannt für seine hochentwickelten, proprietären Komponenten mit erheblichem Aftermarket-Anteil und starker Präsenz auf wichtigen Luft- und Raumfahrt- sowie Verteidigungsplattformen.
Die Transaktion entspricht der Strategie von TransDigm, Unternehmen mit proprietären Produkten und erheblicher Aftermarket-Präsenz zu erwerben. Die Finanzierung der Übernahme erfolgt aus vorhandenen Barmitteln und unterliegt den behördlichen Genehmigungen in den USA sowie den üblichen Abschlussbedingungen.
- Strategic acquisition valued at $765 million adds significant revenue potential with $350 million annual revenue
- Strong aftermarket business comprising 40% of revenue provides recurring income
- Acquisition target has proprietary technology and established positions across diverse aerospace and defense platforms
- Transaction will be funded through existing cash, indicating strong liquidity position
- Acquisition expected to meet TransDigm's private equity-like return objectives
- Transaction subject to regulatory approvals, introducing closing uncertainty
- Significant cash outlay of $765 million may impact available liquidity
Insights
TransDigm's $765M acquisition of Simmonds strengthens their aerospace aftermarket portfolio, aligning with their high-margin proprietary products strategy.
TransDigm has announced a
The acquisition perfectly aligns with TransDigm's long-established business model of acquiring highly engineered, proprietary aerospace components with substantial aftermarket revenue streams. Simmonds' business profile is particularly attractive with
Strategically, this acquisition enhances TransDigm's portfolio in critical aerospace technologies - fuel and proximity sensing systems plus structural health monitoring solutions. These components are essential for aircraft safety and performance monitoring, representing high-value systems that aircraft operators cannot easily substitute with alternative products.
The transaction will be financed entirely through existing cash reserves, indicating TransDigm's strong liquidity position. This cash-based acquisition approach, rather than taking on additional debt, suggests financial discipline while still pursuing growth through acquisition - the cornerstone of TransDigm's business model.
The diversity of platforms served by Simmonds across both commercial and defense markets provides TransDigm with expanded market access and reduced cyclicality in revenue streams, further strengthening their aerospace components ecosystem while maintaining their focus on proprietary, high-margin product lines with significant aftermarket potential.
Simmonds, headquartered in
Kevin Stein, TransDigm's President and Chief Executive Officer, stated, "We are excited about the acquisition of Simmonds. The Company's highly engineered, proprietary products with substantial aftermarket content fit well with our long-standing strategy. Simmonds has established positions across a diverse range of commercial and defense platforms. The Company is an industry leader in fuel & proximity sensing and structural health monitoring technology, and we are excited to partner with Simmonds to continue investing in the business. We also look forward to working with and continuing to support Simmonds' commercial and defense customers. As with all TransDigm acquisitions, we expect this acquisition to create equity value in-line with our long-term private equity-like return objectives."
The acquisition is subject to regulatory approvals in
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.
Forward-Looking Statements
All forward-looking statements involve risks and uncertainties that could cause TransDigm Group's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitical or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate change and other natural disasters or meeting sustainability-related voluntary goals or regulatory requirements; our reliance on certain customers; the United States ("
Contact:
Investor Relations
(216) 706-2945
ir@transdigm.com
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SOURCE TransDigm Group Inc.
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