TransDigm Group [TDG] yesterday said it has agreed to acquire the actuation business of Telair International for $94 million in cash, giving it proprietary capabilities and additional aftermarket content.
The actuation business unit manufactures highly engineered electro-mechanical products and other components for commercial and military aircraft, with two-thirds of sales coming from the commercial aerospace market and the rest from the military market. About two-thirds of revenues come from the aftermarket. The business is expected to have $25 million in sales and 15 cents earnings per share this year.
“Telair Actuation is a solid proprietary business with significant aftermarket content,” W. Nicholas Howley, chairman and CEO of TransDigm, said in a statement. “The business has a broad installed base of product on Boeing commercial transports along with applications on a number of high use military platforms. The products will benefit both from the anticipated recovery in the commercial aerospace market and our value creation activities.”
The actuation business services the Boeing 737, 747, 767 and 777 commercial planes and Lockheed Martin‘s [LMT] F-16 and C-130 military aircraft.
The deal is expected to close by the end of this year. Telair is a subsidiary of Teleflex Inc. [TFX].