This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: TransDigm Expands With $286 Million Arkwin Acquisition

NEW YORK ( TheDeal) -- Engineered aerospace components manufacturer TransDigm Group Inc. (TDG - Get Report) of Cleveland, announced Wednesday that it will acquire closely-held aerospace hydraulic and fuel systems components maker Arkwin Industries Inc. for $286 million.

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 was little changed at $154.58 after gaining 3.9% this week.

Westbury, N.Y.-based Arkwin was incorporated in 1951 and had about $95 million in sales for 2012. It employs about 300 people.

Arkwin serves both the commercial and military flight markets. Commercial platforms that use the target's wares include the Boeing 737 and 777, Airbus 320, and Bombardier and Embraer jets. Arkwin also builds components for the Joint Strike Fighter, C-130, F-16 and F/A-18 military planes, and the Sikorsky SH-60, S-76 and S-92 helicopters.

The deal should close by the second half of the year.

"The highly engineered products will allow us to expand our content on a number of substantial platforms and engine applications. Arkwin fits well with our consistent product and acquisition strategy," TransDigm chief executive W. Nicholas Howley said in a statement Tuesday.

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.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TDG $225.91 -0.26%
AAPL $95.11 -0.07%
FB $117.76 0.28%
GOOG $692.73 0.05%
TSLA $232.87 0.24%


Chart of I:DJI
DOW 17,686.19 -64.72 -0.36%
S&P 500 2,049.62 -13.75 -0.67%
NASDAQ 4,732.8370 -30.3870 -0.64%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs