TransDigm Group Incorporated has recently announced its acquisition of Stellant Systems, Inc. for approximately $960 million in cash, including certain tax benefits. Stellant is a leading global designer and manufacturer of high-power electronic components and subsystems serving the aerospace and defense end market. It is expected to generate approximately $300 million in revenue for the calendar year ending December 31, 2025, with approximately 50% of its revenue derived from the aftermarket.
Stellant has established positions across a diverse range of both commercial and defense platforms, adding new products and services to TransDigm's portfolio. The acquisition is expected to create equity value in-line with TransDigm's long-term private equity-like return objectives.
This acquisition is subject to regulatory approvals in the United States and customary closing conditions.
Stellant has manufacturing locations in Torrance, California; Williamsport, Pennsylvania; Melville, New York; and Topsfield, Massachusetts, and employs approximately 950 people.
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 Stellant Systems, Inc. represents a significant expansion for TransDigm Group in terms of its product offerings and aftermarket revenue generation. Following these announcements, the company's shares moved 0.53%, and are now trading at a price of $1269.52. If you want to know more, read the company's complete 8-K report here.
