Triumph Group  (TGI) - Get Triumph Group, Inc. Report   was trading higher Friday after the company said it hired Citigroup to assist it in exploring strategic alternatives for its Aerospace Structures business unit.

The move furthers a three-year effort to reshape the company's portfolio, reduce debt and generate cash. Over the past three years, Triumph has been focused on its divestitures, plant consolidations, and program restructurings, said SunTrust analyst Michael Ciarmoli.

As an option, if selling the unit is viable, Ciarmoli said the segment could fetch between $400 million $500 million on a multiple of 2020 Ebitda.

"Aerospace Structures has made significant operational improvements over the last several years while updating its mix of programs and sites to reduce risk to both customers and Triumph shareholders," said Daniel J. Crowley, Triumph's president and CEO. "These actions expand the option set for Aerospace Structures' future as their dedicated employees and suppliers continue to deliver on customer commitments and field new technologies and automation to enhance their competitiveness."

The news comes one day after Triumph won a contract from Boeing  (BA) - Get Boeing Company Report to supply hydraulics for the U.S. Navy's MQ-25 unmanned aerial refueling program.

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"Triumph will provide a variety of hydraulic subsystems used in the flight controls, landing gear, aerial refueling and arresting systems of the MQ-25," the company said Thursday.

Triumph was trading at $23.86, up 11.7% on Friday.

The stock has an average hold rating and consensus price target of $25.27. There are seven holds and one buy rating on the stock, according to FactSet.

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