TransDigm Acquires Raptor Scientific for $655 Million

TransDigm Group Incorporated has recently announced its acquisition of Raptor Labs Holdco, LLC, also known as Raptor Scientific, for approximately $655 million in cash, including certain tax benefits. Raptor Scientific is a leading global manufacturer of complex test and measurement solutions primarily serving the aerospace and defense end markets. The company is anticipated to generate around $90 million in revenue for the calendar year ending December 31, 2024.

Raptor Scientific employs approximately 170 people and has manufacturing locations in various parts of the United States, including Livermore, CA; Woodland Hills, CA; Berlin, CT; Huntsville, AL; and Peterborough, NH.

TransDigm's president and CEO, Kevin Stein, expressed excitement about the acquisition, emphasizing that the company's comprehensive proprietary and highly engineered product portfolio of aerospace and defense testing and instrumentation solutions aligns well with TransDigm's value generation strategy. He also highlighted the outstanding reputation Raptor Scientific has with its customers and the expectation that the acquisition will create equity value in line with TransDigm's long-term private equity-like return objectives.

The acquisition is subject to regulatory approvals in the United States and customary closing conditions and is expected to be financed through existing cash on hand. 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 acquisition of Raptor Scientific represents a strategic move for TransDigm as it expands its portfolio and strengthens its position in the aerospace and defense markets with highly specialized and engineered products. Today the company's shares have moved -1.7% to a price of $1327.79. For more information, read the company's full 8-K submission here.

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