TDG

TransDigm Acquires SEI Industries for Aerial Firefighting Solutions

Transdigm Group Incorporated (NYSE: TDG) has recently completed the acquisition of SEI Industries Ltd, a leading provider of highly engineered products for aerial firefighting and other liquid transportation solutions. SEI, headquartered in Delta, British Columbia, is known for its innovative Bambi Bucket®, a collapsible firefighting bucket used globally to combat forest fires and other applications. The company is expected to generate approximately $30 million in revenue for the calendar year ending December 31, 2024, with about 85% of the revenues coming from the aftermarket.

The acquisition, financed through existing cash on hand, aligns with Transdigm's aftermarket-focused value generation strategy. According to Kevin Stein, Transdigm’s President and CEO, the acquisition of SEI Industries is expected to create equity value in line with the company's long-term private equity-like return objectives.

Transdigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer, and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. The company's major product offerings include a wide range of components and systems for the aerospace industry.

This acquisition marks a significant addition to Transdigm's portfolio, expanding its offerings in the aerospace industry and further solidifying its position as a key player in providing specialized and innovative solutions for various aviation needs. The market has reacted to these announcements by moving the company's shares -0.9% to a price of $1325.18. Check out the company's full 8-K submission here.

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