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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The Deal: Metalmark Makes $250M Deal to Sell Airborne Systems

NEW YORK (The Deal) -- Private equity firm Metalmark Capital is exiting portfolio company Airborne Systems Inc. in a sale to strategic player TransDigm Group (TDG) for $250 million, the buyer announced Monday, Dec. 2.

Pennsauken, N.J.-based Airborne is a designer and manufacturer of personnel parachutes, cargo aerial delivery systems, emergency escape systems, naval decoys and other related products.

The company's annual revenue is about $160 million.

Metalmark portfolio company HDT International Holdings acquired Airborne in January 2010 for an undisclosed amount.

HDT has been a Metalmark portfolio company since 2007 when it was acquired from Behrman Capital for $335 million.

Cleveland-based TransDigm is a designer, producer and supplier of highly engineered aircraft components for commercial and military aircraft.

On the day it announced it was acquiring Airborne, TransDigm's shares were down 1.4% at $154.38.

TransDigm chairman and CEO W. Nicholas Howley said in a statement that Airborne's large number of international customers provides a buffer to the current uncertainties of the U.S. defense spending environment.

About 45% of Airborne's revenue comes from domestic customers and 55% from international customers.

U.S. defense spending is expected to decrease to about $527.6 billion for fiscal 2014, down from $622 billion in fiscal 2013 and $652.3 billion the year before that, according to U.S. Department of Defense budget requests.

For 2014, the DOD said, it has identified about $34 billion in savings from consolidating infrastructure and closing bases, terminating or restructuring weapons programs, stabilizing medical costs and restructuring military construction plans.

While announcements for defense targets remain weak, there has still been M&A activity in the aerospace and defense sector. As of the end of the third quarter, there were 184 deals in the sector globally valued at $9.3 billion, with 53 of them worth $3.1 billion taking place within the third quarter. For full year 2012, there were 296 deals valued at $21.9 billion, according to PricewaterhouseCoopers LLP's November industry report.

The largest deal of the third quarter was Cedar Rapids, Iowa-based Rockwell Collins Inc.'s acquisition of Arinc Inc. from Washington private equity firm Carlyle Group for $1.4 billion. Carlyle had acquired the aerospace communications company from a consortium of airlines in 2007 for about $650 million.

Another large deal was MidOcean Partners LP's sale of rifle maker Bushnell Group Holdings Inc. to Alliant Techsystems Inc. for $985 million.

MidOcean originally purchased Bushnell in 2007 from Wind Point Partners for $500 million.

Neither Metalmark nor TransDigm were available for comment.

Moelis & Co. was Metalmark's financial adviser.

Written by Taina Rosa

Stock quotes in this article: TDG 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs