TransDigm Announces Acquisition of Jet Parts Engineering and Victor Sierra Aviation Holdings

Rhea-AI Summary

TransDigm (NYSE: TDG) agreed to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings for approximately $2.2 billion in cash, including certain tax benefits, subject to U.S. regulatory approvals and customary closing conditions. The two portfolio companies reported combined revenue of ~$280 million for calendar 2025 and employ about 700 people across engineering and repair sites in the U.S. and the U.K. Both targets are focused on proprietary PMA and aftermarket parts, with nearly all revenue from the commercial aftermarket; TransDigm says they will operate independently and support existing customers while pursuing growth under TransDigm ownership.

Positive

• Adds approximately $280M of combined 2025 revenue
• Acquires proprietary PMA product lines serving commercial aftermarket
• Expands engineering and repair footprint across U.S. and U.K. facilities
• Combined workforce of ~700 employees broadens technical capacity

Negative

• Cash purchase of approximately $2.2B represents a large near-term cash outflow
• Transaction subject to U.S. regulatory approvals, creating closing uncertainty
• Targets derive nearly 100% of revenue from commercial aftermarket, indicating concentration risk

News Market Reaction

+1.15%

1 alert

+1.15% News Effect

On the day this news was published, TDG gained 1.15%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Acquisition price: $2.2 billion Combined revenue: $280 million JPE employees: 300 people +2 more

5 metrics

Acquisition price $2.2 billion Cash consideration including certain tax benefits for JPE and VSA

Combined revenue $280 million Calendar year ended December 31, 2025 for both Companies

JPE employees 300 people Jet Parts Engineering workforce across U.S. and U.K. locations

VSA employees 400 people Victor Sierra Aviation Holdings workforce across U.S. facilities

Commercial aftermarket mix Nearly 100% of revenue Combined commercial aftermarket revenue share for the Companies

Market Reality Check

Price: $1435.52 Vol: Volume 227,360 is below t...

low vol

$1435.52 Last Close

Volume Volume 227,360 is below the 20-day average of 331,546 (relative volume 0.69). low

Technical Price $1,433.54 trades above the 200-day MA $1,381.74 and is 11.72% below the 52-week high, 21.12% above the 52-week low.

Peers on Argus

TDG was up 0.68% with mixed peer moves: HWM +0.81%, GD +0.94%, NOC +2.22%, HEI +...

TDG was up 0.68% with mixed peer moves: HWM +0.81%, GD +0.94%, NOC +2.22%, HEI +0.40%, LHX -0.18%. Scanner data did not flag a sector-wide move.

Historical Context

5 past events · Latest: Dec 31 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 31	Acquisition announcement	Positive	+1.0%	Agreement for Stellant Systems sale to TransDigm for $960M.
Dec 31	Acquisition announcement	Positive	+1.0%	TransDigm announces $960M cash acquisition of Stellant Systems.
Dec 18	Portfolio update	Neutral	+0.1%	ScioTeq sale completion; TDG mentioned as prior carve-out owner.
Nov 12	Earnings results	Positive	+1.1%	Strong FY 2025 sales, income, EBITDA and margin expansion with guidance.
Nov 03	Earnings preview	Neutral	-0.7%	Announcement of timing and logistics for Q4 earnings call.

Pattern Detected

Recent material news — especially acquisitions and earnings — has typically seen modestly positive next-day price reactions.

Recent Company History

Over the last six months, TDG reported strong fiscal 2025 results with net sales of $8,831M and net income of $2,074M, alongside higher EBITDA margins and sizeable capital returns. The company has remained acquisition-focused, announcing and later detailing the Stellant Systems deal for about $960M. Other headlines touched on portfolio reshaping, such as ScioTeq’s sale after a prior carve-out. Against this backdrop, today’s acquisition of Jet Parts Engineering and Victor Sierra continues TDG’s strategy of adding proprietary, aftermarket-focused aerospace assets.

Market Pulse Summary

This announcement details TDG’s agreement to acquire Jet Parts Engineering and Victor Sierra for abo...

Analysis

This announcement details TDG’s agreement to acquire Jet Parts Engineering and Victor Sierra for about $2.2B in cash, bringing in roughly $280M of largely commercial aftermarket revenue. The businesses add proprietary PMA and OEM-alternative parts across commercial, regional, cargo, and business aviation. In context of TDG’s recent acquisitions of Simmonds and Stellant, investors may watch for regulatory approvals, closing timelines, and future disclosures on margins and integration progress.

Key Terms

pma, mro

2 terms

pma regulatory

"JPE's products are highly engineered, proprietary PMA components..."

PMA stands for Premarket Approval, the U.S. Food and Drug Administration’s highest-level review for high-risk medical devices. It’s a thorough evaluation to confirm a device is safe and effective before it can be sold, like a final safety inspection and license to operate. Investors care because receiving PMA can open a significant revenue stream, while delays or rejection can postpone sales and reduce a company’s value.

mro technical

"...as well as maintenance, repair and overhaul ("MRO") providers."

MRO stands for Maintenance, Repair, and Operations, referring to the supplies and services companies provide to keep machinery, buildings, and infrastructure functioning smoothly. These essentials are vital for ongoing business activities, much like routine car maintenance keeps a vehicle running reliably. Investors pay attention to MRO companies because their performance reflects the health of industries that rely heavily on regular upkeep and support services.

AI-generated analysis. Not financial advice.

CLEVELAND, Jan. 16, 2026 /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG) today announced it has entered into a definitive agreement to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings (collectively "the Companies"), portfolio companies of Vance Street Capital, for approximately $2.2 billion in cash, including certain tax benefits.

Jet Parts Engineering

Jet Parts Engineering ("JPE"), headquartered in Seattle, Washington, is a leading independent designer and manufacturer of aerospace aftermarket solutions, primarily proprietary OEM-alternative parts and repairs. JPE serves commercial, regional and cargo airline customers, as well as maintenance, repair and overhaul ("MRO") providers. JPE's products are highly engineered, proprietary PMA components with a strong presence across major commercial aerospace platforms. Nearly all of JPE's revenue is derived from the commercial aftermarket. In addition to its engineering headquarters in Seattle, Washington, JPE has engineering and component repair locations in Texas, New York, Florida, Alabama and the United Kingdom. JPE employs approximately 300 people.

Victor Sierra Aviation

Victor Sierra Aviation Holdings ("VSA") is a leading designer, manufacturer, and distributor of proprietary PMA and other aftermarket parts serving the commercial aerospace end market – primarily the general aviation and business aviation sectors. VSA is a leading collection of brands including McFarlane Aviation, Tempest Aero Group, and Aviation Products Systems. VSA offers a complete line of highly engineered PMA, custom design and OEM products, as well as service and repair stations. Nearly all of VSA's revenue is derived from the commercial aftermarket. VSA primarily operates out of three facilities: Baldwin City, Kansas; Burlington, North Carolina; and Granite City, Illinois. Additional satellite facilities are in Illinois, Texas, Kentucky and Washington to provide support and strategic proximity to customers. VSA employs approximately 400 people.

The Companies collectively generated approximately $280 million in revenue for the calendar year ended December 31, 2025. 

Mike Lisman, TransDigm's Chief Executive Officer, stated, "We are excited to have an agreement to acquire Jet Parts Engineering and Victor Sierra, two well run, profitable businesses that will fit well within TransDigm. The Companies' highly engineered, proprietary OEM-alternative parts and services generate nearly 100% commercial aftermarket revenue. These businesses offer a unique value proposition to their airline, business, and general aviation end user customers as an alternative to OEM parts and are each growing nicely. We will continue to offer this unique value proposition to customers and grow both companies under TransDigm ownership, where they will operate independently, consistent with our long-term approach to running our businesses. We look forward to working with and continuing to support the Companies' customers. As with all TransDigm acquisitions, we expect these acquisitions to create equity value in-line with our long-term private equity-like return objectives."

Nick Howley, TransDigm's Chairman added, "This is a natural progression for TransDigm. We have had a long-term and sizable PMA effort within our existing operating units. Since the formation of TransDigm, we have regularly used our uniquely broad aerospace engineering and market knowledge to design and offer our aftermarket customers a range of well engineered products that provide a mix of improved life, superior performance, and other benefits. Both Jet Parts Engineering and Victor Sierra are good businesses that align well with our model."

The acquisition is subject to regulatory approvals in the United States and customary closing conditions.

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 regulatory requirements; our reliance on certain customers; the United States ("U.S.") defense budget and risks associated with being a government supplier including government audits and investigations; failure to maintain government or industry approvals; risks related to changes in laws and regulations, including increases in compliance costs and potential changes in trade policies and tariffs; potential environmental liabilities; liabilities arising in connection with litigation; risks and costs associated with our international sales and operations; and other factors. Further information regarding the important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group's most recent Annual Report on Form 10-K and other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission. Except as required by law, TransDigm Group undertakes no obligation to revise or update the forward-looking statements contained in this press release.

Contact:
Investor Relations 
(216) 706-2945 
ir@transdigm.com

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SOURCE TransDigm Group Inc.

FAQ

How much is TransDigm paying to acquire Jet Parts Engineering and Victor Sierra (TDG)?

TransDigm agreed to pay approximately $2.2 billion in cash, including certain tax benefits.

What revenue and employee size do the acquired companies add to TransDigm (TDG)?

The companies generated approximately $280 million in 2025 revenue and employ about 700 people combined.

What products and markets do Jet Parts Engineering and Victor Sierra serve for TransDigm (TDG)?

Both companies design and manufacture proprietary PMA aftermarket parts serving commercial, regional, cargo, general, and business aviation customers.

Are there regulatory or closing conditions for the TransDigm (TDG) acquisition?

Yes; the acquisition is subject to U.S. regulatory approvals and customary closing conditions.

Will the acquired businesses operate independently after the TransDigm (TDG) acquisition?

TransDigm stated both businesses will operate independently and continue to support their customers under TransDigm ownership.