Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Best Places to Work
    • Rubber Division IEC
    • War in Ukraine
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • Airless Tires
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • Ask the Expert
    • Healthcare Elastomers Conference
    • Rubber In Automotive Conference
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
October 12, 2018 02:00 AM

TransDigm Group to buy Esterline Technologies in a $4 billion deal, including debt

Scott Suttell
Crain's Cleveland Business
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    TransDigm isa producer, designer and supplier of aerospace components and systems for commercial and military aircraft.

    CLEVELAND—TransDigm Group Inc. is buying Esterline Technologies for about $4 billion, including the assumption of debt.

    In an Oct. 10 news release, TransDigm, a producer, designer and supplier of aerospace components and systems for commercial and military aircraft, said it will pay about $122.50 per share in cash for Esterline's stock outstanding. That represents a 38 percent premium to Esterline's closing price of $88.79 per share on Oct. 9.

    Directors of both companies have approved the deal, which is expected to be completed during the second half of next year. TransDigm said it expects the acquisition "to be financed primarily through cash on hand and the incurrence of new term loans." The deal should be "modestly accretive to TransDigm's adjusted earnings per share within the first year of ownership," according to the release.

    Bellevue, Wash.-based Esterline makes equipment for commercial jetliners, business jets and military aircraft. Its anticipated fiscal year 2018 revenue is about $2 billion, TransDigm said. Esterline has more than 12,500 employees at more than 50 locations worldwide, operating within 28 business units.

    Esterline "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," TransDigm said.

    "We are pleased to have reached agreement to acquire a collection of businesses that fit well with our focused and consistent strategy," W. Nicholas Howley, TransDigm's executive chairman, said in a statement. "Esterline's core aerospace and defense business consists of primarily proprietary, sole source products with significant and growing aftermarket exposure. We view this as highly complementary to our existing business. We are confident that the combination of Esterline's leading positions and our proven track record of driving performance will enable us to deliver the private equity-like returns our investors have come to expect from this investment."

    TransDigm president and CEO Kevin Stein said that upon completion of the acquisition, Bob Henderson, TransDigm's current vice chairman, "will oversee the integration and operations of Esterline."

    The deal "delivers a compelling value for our shareholders," Curtis Reusser, chairman, president and CEO of Esterline, said in a statement. "I am pleased with the outcome of our thoughtful strategic review process, and we believe it is the best result for all Esterline stakeholders."

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Sustainability, circularity require full tire industry buy-in
    2
    VMI outlines tire technology upgrades for efficient, sustainable manufacturing
    3
    Toyo development could yield CO2-derived butadiene rubber
    4
    Michelin to invest $100 million in Kansas ag plant
    5
    Sumitomo Chemical ending SSBR, EPDM production
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Best Places to Work
      • Rubber Division IEC
      • War in Ukraine
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • Airless Tires
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • Healthcare Elastomers Conference
        • Rubber In Automotive Conference
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION