TransDigm Group [TDG] last Thursday said it has agreed to acquire the Electron Device business of Communications & Power Industries
(CPI) for $1.4 billion in a deal that adds proprietary components used in aerospace and defense products.
TransDigm said the Electron Devices business generates about 70 percent of its $300 million in annual sales from the aftermarket.
“This business fits well with our long-standing strategy,” Kevin Stein, TransDigm’s president and CEO, said in a statement. “The vast majority of the company’s revenues come from highly engineered proprietary products with substantial aftermarket content. The company has established positions across a diverse range of new and existing platforms within the broader aerospace and defense industry.”
CPI’s Electron Device business has about 900 employees and is organized into four divisions based in Massachusetts, California, and England. The business makes an array of microwave components and devices.
The acquisition is expected to close by mid-2024 subject to regulatory approvals in the U.S. and the United Kingdom. TransDigm said it is financing the deal through cash on hand and new long-term debt.
TransDigm also announced a special shareholder dividend of $35 per share.
CPI is a portfolio company of the private equity firm The Jordan Company.