TransDigm Group Incorporated announced June 21 that it has entered into a definitive agreement to acquire the assets of GE Aviation’s Electromechanical Actuation Division, for approximately $150 million in cash.
The acquisition, subject to regulatory approvals and other customary closing conditions, is expected to close around the end of the third quarter fiscal 2013.
The business, which will be conducted by TransDigm through a new entity, Whippany Actuation Systems, LLC (Whippany), located in Whippany, N.J., manufactures proprietary, highly engineered aerospace electromechanical motion control subsystems for civil and military applications. Product offerings include control electronics, motors, high power mechanical transmissions and actuators. The major commercial end-use platforms include the Airbus 380, Boeing 737NG and 777, and Embraer regional jets. The major military end-use platforms include Sikorsky SH-60 and S-92; Boeing CH-47, and Global Hawk. Whippany’s revenues are estimated to be approximately $80 million with aftermarket accounting for 40 percent of the revenues and the commercial market comprising about 50 percent of the revenues.
“The business fits well with our consistent strategy of acquiring proprietary aerospace businesses with significant aftermarket content,” said W. Nicholas Howley TransDigm chairman and CEO. “Its’ products are on a number of commercial platforms with OEM and aftermarket growth opportunities. As a result, when combined with a softer military outlook, we expect the commercial content to rise as a percent of total revenue. Additionally, these highly engineered products will allow us to expand our content on a number of substantial platforms, and fit well with the TransDigm portfolio of products. As with all TransDigm acquisitions, we see opportunities for significant value creation.”