TransDigm Completes Acquisition of the Simmonds Precision Products, Inc. Business of Goodrich Corporation from RTX Corporation

Rhea-AI Summary

TransDigm (NYSE: TDG) completed the acquisition of Simmonds Precision Products from RTX on Oct 6, 2025 for approximately $765 million in cash, following an initial announcement on June 30, 2025. Simmonds, based in Vergennes, Vermont, designs and manufactures fuel & proximity sensing and structural health monitoring systems for aerospace and defense.

Simmonds is expected to generate about $350 million of revenue in calendar 2025, with ~40% aftermarket revenue, nearly all sales from proprietary products, and ~900 employees. The deal was financed from TransDigm's cash on hand.

Positive

• Revenue addition of approximately $350 million for 2025
• 40% aftermarket revenue mix supports recurring aftermarket cash flow
• Nearly all proprietary products imply strong aftermarket pricing and defensibility

Negative

• $765 million cash purchase reduces TransDigm's cash reserves
• Acquisition financed entirely from cash could limit near-term liquidity flexibility

News Market Reaction

+0.23%

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+0.23% News Effect

On the day this news was published, TDG gained 0.23%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CLEVELAND, Oct. 6, 2025 /PRNewswire/ -- TransDigm Group Incorporated ("TransDigm Group") (NYSE: TDG) today announced that it has successfully completed its acquisition of the Simmonds Precision Products, Inc. Business ("Simmonds" or "the Company") of Goodrich Corporation from RTX Corporation (NYSE: RTX) for approximately $765 million in cash, including certain tax benefits. TransDigm financed the acquisition through cash on hand. The acquisition of Simmonds was previously announced on June 30, 2025.

Simmonds, headquartered in Vergennes, Vermont, is a leading global designer and manufacturer of fuel & proximity sensing and structural health monitoring solutions for the aerospace and defense end markets. The Company's products are highly engineered, proprietary components with significant aftermarket content and a strong presence across major aerospace and defense platforms.  Approximately 40% of Simmonds' revenue is derived from the aftermarket and nearly all of its revenue is generated from proprietary products. Simmonds is expected to generate approximately $350 million in revenue for the calendar year ending December 31, 2025. The Company employs approximately 900 people.

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, 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

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "may," "will," "should," "expect," "intend," "plan," "predict," "anticipate," "estimate," or "continue" and other words and terms of similar meaning may identify 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 ("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 did TransDigm pay for Simmonds and when was the deal completed (TDG)?

TransDigm paid approximately $765 million in cash, with the acquisition completed on Oct 6, 2025.

How much revenue is Simmonds expected to generate in 2025 and what is the aftermarket mix (TDG)?

Simmonds is expected to generate about $350 million in revenue for calendar 2025, with roughly 40% from the aftermarket.

How did TransDigm finance the Simmonds acquisition (TDG)?

TransDigm financed the acquisition entirely from cash on hand.

What product lines and markets does Simmonds serve relevant to TransDigm (TDG)?

Simmonds makes fuel & proximity sensing and structural health monitoring solutions for the aerospace and defense end markets.

How many employees does Simmonds have after the acquisition by TransDigm (TDG)?

Simmonds employs approximately 900 people.

What shareholder-relevant benefits does Simmonds bring to TransDigm (TDG)?

Material revenue addition (~$350M forecast), high aftermarket exposure (~40%), and largely proprietary product offerings.