CLEVELAND—TransDigm Group Inc. completed the acquisition of the Kirkhill elastomers business from Esterline Corp. for a total purchase price of $50 million in cash, subject to adjustment.
Kirkhill, headquartered in Brea, Calif., is a supplier of engineered aerospace elastomers, with annual revenues of about $90 million, according to a TransDigm release. The company employs around 800.
Roughly 50 percent of its revenue is from commercial transport airframes with the remainder mostly from defense aerospace applications.
Kirkhill products fit well with TransDigm's business strategy, said W. Nicholas Howley, chairman and CEO of TransDigm.
"Although the improvements could take a little longer to develop than for some acquisitions, we see significant opportunities to improve Kirkhill's profitability," he said in a statement. "We expect the Kirkhill acquisition to create equity value well in line with our long-term private equity type return objectives."
Esterline is a specialty manufacturer in the global aerospace and defense markets. TransDigm is a global designer, producer and supplier of highly engineered aircraft components.