The purchase is the latest bolt-on for the aircraft parts company, which is working toward securing new business on commercial flight platforms. The buyer has said in filings that it expects a modest decline in revenue from the defense market this year amid uncertainty about U.S. defense spending.
TransDigm has been an active acquirer, using M&A to build up its commercial offerings in particular. In August 2011 it bought Kent, Ohio-based laminated parts and aircraft interior maker Schneller Holdings LLC from Graham Partners Inc. of Newtown Square, Pa., for $288.5 million in cash. Three months later, TransDigm bought counterpart Harco Laboratories Inc., of Branford, Conn., for $84 million in cash. Harco makes engine cable assemblies for engines produced by the Pratt & Whitney division of United Technologies Corp. and Rolls-Royce plc. In January 2012, TransDigm acquired AmSafe Global Holdings Inc., a Phoenix maker of safety restraints, through a $750 million sale by the company's private equity owners, Berkshire Partners LLC and Greenbriar Equity Group LLC. Last month, TransDigm announced a tender offer for Clearwater, Fla., peer Aerosonic Corp. for about $39 million. TransDigm reported net income of $67.9 million for its fiscal second quarter ending March 30 on $456.6 million in sales, in a regulatory filing made May 5. That compared with $81.5 million in net income on $423.4 million in sales for the same period in 2012. The company attributed the latest results to increased interest expenses.