April 30, 2015 – TransDigm Group has entered into an agreement to acquire the assets of the aerospace business of Pexco Aerospace, for approximately US$496m in cash. Pexco is a manufacturer of extruded plastic interior parts for use in the commercial aerospace industry. A vast majority of revenues are sole source, the majority is proprietary and nearly all revenue comes from the commercial transport market. The business employs approximately 300 people in two locations in Yakima, Washington and Huntington Beach, California.
The purchase price includes approximately US$160m of tax benefits to be realized by TransDigm over a 15-year period beginning in 2015. TransDigm expects to finance the acquisition primarily through a combination of cash on hand, existing availability under its revolving credit facility, and new debt.
W. Nicholas Howley, chairman and CEO of TransDigm Group Incorporated, stated, “Pexco Aerospace is a leading proprietary aerospace manufacturer with attractive positions on all active Boeing platforms and a significant and growing commercial aftermarket. The commercial aftermarket is currently approaching 35% of revenue but we expect that percentage to grow to close to 60% over the next five years as the Boeing 787 and Boeing Sky Interior of 737 become an increasing share of the installed fleet. These products fit well with our overall business strategy.”
