Transdigm Group Incorporated (NYSE: TDG) has successfully completed the acquisition of the electron device business of Communications & Power Industries (CPI) for approximately $1.385 billion in cash. This acquisition was financed through cash on hand as well as cash proceeds from notes offerings completed in November 2023.
The CPI electron device business, which primarily serves the aerospace and defense market, generated approximately $300 million in revenue for its fiscal year ended September 29, 2023. Notably, around 70% of its revenue is derived from the aftermarket, and nearly all of its revenue is generated from proprietary products.
The acquisition positions Transdigm Group as a leading global manufacturer of electronic components and subsystems for use on nearly all commercial and military aircraft in service today. The acquisition adds to Transdigm's already substantial product offerings which include a wide range of highly engineered aircraft components.
The electron device business has manufacturing locations in Palo Alto, California; Beverly, Massachusetts; Middlesex, UK; and Woodland, California, and employs approximately 900 people. This strategic acquisition is expected to further enhance Transdigm's position in the aerospace and defense market. The market has reacted to these announcements by moving the company's shares -2.0% to a price of $1335.0. If you want to know more, read the company's complete 8-K report here.
