TransDigm Group Inc. just got quite a bit larger.
The Cleveland-based maker of aerospace components and systems for commercial and military aircraft said in a news release March 14 that it has completed its acquisition of Esterline Technologies Corp., a supplier of products to the global aerospace and defense industry. The deal was announced last Oct. 10.
Esterline's operations include molder Nylon Molding Corp.
Shareholders of Bellevue, Wash.-based Esterline will receive $122.50 per share in cash, without interest, according to terms of the merger agreement. The deal is valued at about $4 billion, including the assumption of debt. The $122.50-per-share price represented a 38 percent premium to Esterline's closing price of $88.79 per share on Oct. 9, 2018, the day before the deal was announced.
TransDigm said in the release that the acquisition of Esterline expands its "platform of proprietary and sole-source content for the aerospace and defense industries, including significant aftermarket exposure."
Esterline posted revenue of $2 billion for fiscal year 2018. TransDigm said the company "has attractive platform positions in both the OEM and aftermarket and has substantial content on many important commercial aircraft variants, many regional and business jet aircraft and major defense platforms." Esterline has more than 12,500 employees at more than 50 locations worldwide, operating within 28 business units.
TransDigm in fiscal 2018 posted sales of $3.81 billion, up 8.8 percent from $3.5 billion in fiscal 2017. Its net income from continuing operations in fiscal 2018 increased 53% to $961.5 million, or $16.28 per share, from $628.5 million, or $8.45 per share, the prior fiscal year.As of 2:45 p.m. on Thursday, TransDigm shares were up $3.89, or about 0.9 percent, to $443.83 per share.
