3/9/2011 11:11:00 AM
NEWS BRIEFS
Alcoa Completes Acquisition of TransDigm Fastener Operations
Alcoa completed its $240 million acquisition of the aerospace fastener business of TransDigm Group Inc., a global designer, producer and supplier of highly engineered aircraft components. Total after tax cash proceeds from this transaction are estimated to be approximately $170 million.
The new business will become part of Alcoa Fastening Systems.
“This acquisition is an important step for Alcoa Fastening Systems (AFS),” Alcoa Fastening Systems president Vitaliy Rusakov said when the deal was announced in December 2010. “It is a part of our strategic plan to accelerate the growth of our business, add efficiencies, broaden our technology base and expand our product offering to better serve our customers and increase shareholder value.”
The deal comes weeks after TransDigm acquired the fastener business when it purchased McKechnie Aerospace in December 2010 following a bidding war with other aerospace companies, including Precision Castparts Corp. (For analysis see “Alcoa Fastening Systems Strengthens Presence With McKechnie Acquisition“)
The three TransDigm fastener manufacturing facilities are located in Sylmar, California; and Redditch and Leicester, both of the United Kingdom, and employ a combined 400 people. Since they were founded in 1925 and 1950s respectively, the Redditch, Sylmar and Leicester facilities have provided a wide variety of high-strength, high temperature nickel alloy specialty engine fasteners, airframe bolts and slotted entry bearings.
According to filings by TransDigm, the fastener operations of McKechnie generated net sales of $65 million or approximately 22% of total net sales for McKechnie in the 12 months ended Sept. 30, 2010.
Alcoa Fastening Systems, a business unit of Alcoa, is a leading worldwide designer and manufacturer of specialty fastening systems, components, and installation tools for aerospace and industrial applications. Headquartered in Torrance, California, the company has over 5,500 employees and operates 29 locations in 10 countries. ©2011 GlobalFastenerNews.com
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