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TransDigm Closes USD 4bn Acquisition of Esterline Technologies
Friday 15 March 2019

15 March 2019 - Ohio, US-based aircraft components producer TransDigm Group Inc. (NYSE: TDG) has closed the acquisition of all outstanding shares of Washington, US-based aerospace and defense industry supplier Esterline Technologies Corp. (NYSE: ESL), the company said.

TransDigm will purchase Esterline common stock for USD 122.50 per share in an all-cash transaction totaling approximately USD 4.0bn, including the assumption of debt.

TransDigm expects the acquisition to be financed primarily through cash on hand and the incurrence of new term loans, and currently anticipates the acquisition to be modestly accretive to TransDigm's adjusted earnings per share within the first year of ownership.

The acquisition of Esterline expands TransDigm's platform of proprietary and sole source content for the aerospace and defense industries, including significant aftermarket exposure.

TransDigm Group Inc., through its wholly-owned subsidiaries, is a global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service.

Esterline Corp. is a worldwide supplier to the aerospace and defense industry specialising in three core business segments: advanced materials; avionics and controls; and sensors and systems.

Morgan Stanley and Co. LLC acted as financial advisor to TransDigm. Wachtell, Lipton, Rosen and Katz and Baker and Hostetler LLP acted as TransDigm's lead legal counsel.

Goldman Sachs and Co. LLC acted as financial advisor to Esterline and Evercore Group L.L.C. served as advisor to Esterline's board of directors. Skadden, Arps, Slate, Meagher and Flom served as legal counsel to Esterline.
Date Published: 15/03/2019
Target: Esterline Technologies
Country: USA
Deal Size: 4bn (USD)
Sector: Aerospace/Defence
Type: Corporate acquisition
Financing: Cash
Status: Closed
Buyer: TransDigm Group
Buyer Advisor: Morgan Stanley and Co , Wachtell, Lipton, Rosen and Katz , Baker and Hostetler