TransDigm Group Incorporated (NYSE: TDG) and Metalmark Capital announced today that TransDigm has entered into a definitive agreement to acquire Airborne Systems Inc., for approximately $250 million in cash. Airborne Systems is owned by MetalmarkCapital.
The acquisition, subject to review under the Hart-Scott-Rodino Act andother customary closing conditions, is expected to close by the end of the firstquarter of fiscal 2014. The Company's revenues for the fiscal year ended June30, 2013 were approximately $160 million. Roughly 45% of the Company'srevenue came from domestic customers and 55% from international customers.
Airborne Systems is the industry leading designer and manufacturer of personnel parachutes, cargo aerial delivery systems, emergency escape systems, naval decoys and other related products. The Company's highly proprietary products have significant sole source positions with the governments of the UnitedStates, United Kingdom and over 50 additional nations.
Product offeringsprimarily include current generation troop parachutes, latest generationsteerable parachutes for tight drop zone landings, and the ram-air, maneuverableparachute systems used for special operations. The Company's precision-guidedcargo parachutes are used for high altitude GPS-driven cargo drops.
W. Nicholas Howley, Chairman and Chief Executive Officer of TransDigm Group Incorporated, stated, "Airborne Systems is a unique company and asset in the aerospace industry. It is the worldwide market and technology leader in military personnel parachutes, guided aerial cargo and payload delivery systems and related products. The Company's wide range of proprietary products, broad international customer base and recurring stream of upgrade and replacement products fit well with the TransDigm value creation model. We are pleased with the large number of international customers that generate a majority and increasing percentage of the Company's revenues. This customer diversity provides a buffer to the current uncertainties of the U.S. defense spending environment."
"Airborne's leading products and technologies have been a valuable part of Metalmark's portfolio for the past four years," added Jeff Siegal, Managing Director of Metalmark Capital. "We have thoroughly enjoyed working with Airborne and its outstanding management team and wish them the very best in the future."
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