CLEVELAND—Aircraft components producer TransDigm Group Inc. of Cleveland has completed the sale of one business and is on track to sell another before the end of this year.
The company said in a news release that it completed the divestiture of its Esterline Interface Technologies (EIT) group of businesses to an affiliate of KPS Capital Partners LP for about $190 million. When the deal was disclosed in August, TransDigm executive chairman W. Nicholas Howley said the deal was "part of our previously communicated plan to evaluate and potentially divest businesses that do not align well with TransDigm's strategy."
The EIT group of businesses, with more than 750 employees globally and revenue of about $190 million for the fiscal year ended Sept. 30, 2018, was acquired in March as part of TransDigm's $4 billion acquisition of Esterline Technologies Corp., a supplier of products to the global aerospace and defense industry. EIT comprises three distinct businesses—Advanced Input Systems, Gamesman and LRE Medical—and serves OEMs in the medical, commercial, industrial, diagnostics and gaming end markets.
In addition to the EIT divestiture, TransDigm said it expects to complete the previously disclosed $920 million sale of the Souriau-Sunbank Connection Technologies business to Eaton Corp. during the fourth quarter of calendar 2019.
Souriau-Sunbank also was acquired by TransDigm in March as part of the Esterline Technologies deal. It's a global supplier of interconnect products for harsh environments, serving customers primarily in aerospace, defense and space end markets. The business generated revenues of $363 million for the 12-month period that ended June 30 of this year.
TransDigm said in the release that it intends to reclassify and report both EIT and the Souriau-Sunbank businesses as discontinued operations for the fourth quarter of fiscal 2019, full fiscal year 2019 and fiscal 2020 guidance.