TransDigm acquires Arkwin Industries - The Deal Pipeline (SAMPLE CONTENT: NEED AN ID?)
Subscriber Content Preview | Request a free trialSearch  


Print  |  Share  |  Reprint

TransDigm acquires Arkwin Industries

by Thomas Zadvydas  |  Published May 16, 2013 at 9:11 AM
Engineered aerospace components manufacturer TransDigm Group Inc., of Cleveland, announced Wednesday that it will acquire aerospace hydraulic and fuel systems components maker Arkwin Industries Inc. for $286 million.

The purchase is the latest bolt-on for the aircraft parts company, which is working toward securing new business on commercial flight platforms. The buyer has said in filings that it expects a modest decline in revenue from the defense market this year amid uncertainty about U.S. defense spending.

Westbury, N.Y.-based Arkwin was incorporated in 1951 and had about $95 million in sales for 2012. It employs about 300 people.

Arkwin serves both the commercial and military flight markets. Commercial platforms that use the target's wares include the Boeing 737 and 777, Airbus 320, and Bombardier and Embraer jets. Arkwin also builds components for the Joint Strike Fighter, C-130, F-16 and F/A-18 military planes, and the Sikorsky SH-60, S-76 and S-92 helicopters.

The deal should close by the second half of the year.

"The highly engineered products will allow us to expand our content on a number of substantial platforms and engine applications. Arkwin fits well with our consistent product and acquisition strategy," TransDigm chief executive W. Nicholas Howley said in a statement Tuesday.

TransDigm has been an active acquirer, using M&A to build up its commercial offerings in particular. In August 2011 it bought Kent, Ohio-based laminated parts and aircraft interior maker Schneller Holdings LLC from Graham Partners Inc. of Newtown Square, Pa., for $288.5 million in cash. Three months later, TransDigm bought counterpart Harco Laboratories Inc., of Branford, Conn., for $84 million in cash. Harco makes engine cable assemblies for engines produced by the Pratt & Whitney division of United Technologies Corp. and Rolls-Royce plc.

In January 2012, TransDigm acquired AmSafe Global Holdings Inc., a Phoenix maker of safety restraints, through a $750 million sale by the company's private equity owners, Berkshire Partners LLC and Greenbriar Equity Group LLC.

Last month, TransDigm announced a tender offer for Clearwater, Fla., peer Aerosonic Corp. for about $39 million.

TransDigm reported net income of $67.9 million for its fiscal second quarter ending March 30 on $456.6 million in sales, in a regulatory filing made May 5. That compared with $81.5 million in net income on $423.4 million in sales for the same period in 2012. The company attributed the latest results to increased interest expenses.

Arkwin Industries and TransDigm didn't return calls seeking further comment on the deal Wednesday.
Tags: Airbus | AmSafe Global Holdings | Arkwin Industries | Boeing | Bombardier | C-130 | Embraer | F-16 | F/A-18 | Harco Laboratories | Joint Strike Fighter | Pratt & Whitney | Schneller Holdings | Sikorsky S-76 | Sikorsky S-92 | Sikorsky SH-60 | TransDigm Group | W. Nicholas Howley

Meet the journalists

Thomas Zadvydas

Reporter: Middle Market

Movers & Shakers

Launch Movers and shakers slideshow

KeyBank hired Mark R. Danahy, former head of originations at Citibank, to expand its residential mortgage operations. For other updates launch today's Movers & shakers slideshow.


Chicago's DHR is still hopeful of a deal with troubled CTPartners

Privately held DHR International Inc. remains intent on buying CTPartners Executive Search Inc. (CTP), despite the CEO of the target recently turning down an offer valued at $61 million. Adding to the uncertainty is a New York Post report detailing alleged sexual discrimination against CTPartners employees. More video