TransDigm Group Incorporated, announced it has entered into a definitive agreement to acquire the Electron Device Business (“the Company”) of Communications & Power Industries, a portfolio company of TJC, L.P., for approximately $1.385 billion in cash.
CPI’s Electron Device Business is a leading global manufacturer of electronic components and subsystems primarily serving the aerospace and defense market. The Company’s products are highly-engineered, proprietary components with significant aftermarket content and a strong presence across major aerospace and defense platforms. Approximately 70% of its revenue is derived from the aftermarket and nearly all of its revenue is generated from proprietary products. CPI’s Electron Device Business generated approximately $300 million in revenue for its fiscal year ended September 30, 2023. The Company has manufacturing locations in Palo Alto, California; Beverly, Massachusetts; Middlesex, UK; and Woodland, California. The Company employs approximately 900 people.
Kevin Stein, TransDigm’s President and Chief Executive Officer, stated, “We are excited about the acquisition of the Electron Device Business of CPI. This business fits well with our long-standing strategy. 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. As with all TransDigm acquisitions, we expect this acquisition to create equity value in-line with our long-term private equity-like return objectives.”
The acquisition, which is expected to close by the end of TransDigm’s third fiscal quarter of 2024, is subject to regulatory approvals in the United States and United Kingdom and customary closing conditions. The acquisition is expected to be financed through existing cash on hand as well as new long-term debt.
SOURCE : PRNewswire