Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, November 17, 2023

Article Excerpt

TRANSDIGM GROUP INC., $957.63, symbol TDG on New York, engages in the design, production, and supply of highly engineered exclusive components for use in commercial and military aircraft worldwide. Its products include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, and specialized pumps and valves. On November 9, 2023, TransDigm announced that it would acquire the electron device business of Communications and Power Industries for $1.39 billion in cash. That firm manufactures electronic components and subsystems for the aerospace and defence market. Approximately 70% of its revenue is derived from aftermarket sales, with almost all those sales from its own proprietary products. Communications and Power Industries has annual revenue of about $300 million. It has four manufacturing facilities in Palo Alto, California; Beverly, Massachusetts; Middlesex, U.K.; and Woodland, California. It has approximately 900 employees. In the quarter ended September 30, 2023, TransDigm’s revenue increased by 22.6%, to $1.85 billion from $1.51 billion a year earlier. Sales were higher due to an 18.5%…