12/14/2010
HEADLINES
TransDigm To Acquire Cargo Fastener Manufacturer

TransDigm Group agreed to acquire the Actuation Business of Telair International Inc. for $94 million in cash. The deal is expected to close by December 31.
 

Simi Valley, CA-based Telair Actuation manufactures cargo fasteners and other aerospace components, as well as electromechanical products for commercial and military aircraft. Major aircraft served include Boeing 737, 747, 767, 777 and F-16, C-130 military platforms.
 

Telair Actuation forecasts 2010 revenue of $25 million, two-thirds of which should come from the commercial aerospace market and the balance from the defense market. About two-thirds of the revenues come from aftermarket sales.
 

“Telair Actuation is a solid proprietary business with significant aftermarket content,” stated TransDigm CEO W. Nicholas Howley. “The highly engineered products are a good fit with our overall strategy.” 
 

“The business has a broad installed base of product on Boeing commercial transports along with applications on a number of high use military platforms. The products will benefit both from the anticipated recovery in the commercial aerospace market and our value creation activities.”  

The announcement comes two months after TransDigm outbid Precision Castparts to acquire rival fastener manufacturer McKechnie Aerospace. The $1.27 billion McKechnie deal is expected to close by the end of 2010.

McKechnie revenue should top $300 million in 2010, with EBITDA margins ranging from 30% to 35% of revenues.  The business, which employs about 1,500 workers, consists of seven operating units that primarily sell to the worldwide commercial aerospace markets.  
 

Approximately two-thirds of the revenues are sold to the commercial transport OEM and aftermarkets; about 15% to the business and regional jet OEM and aftermarkets, and about 15% to the defense segment.  Aftermarket revenues account for 40% of the total.
 

Irvine, CA-based McKechnie has major platform positions in both the OEM and aftermarket on current Boeing and Airbus aircraft. The company also has significant content on the new Boeing 787, Airbus A380 and A350.

 

Former SPS Technologies executive Jim Costello is president of McKechnie’s Fasteners Group, which is comprised of Valley Todeco in Sylmar, CA, and the Linread businesses in the UK. The Fasteners Group generates about 20% of overall McKechnie revenues. Web: mckechnieaerospace.com 

Headquartered in Cleveland, OH, TransDigm designs and produces aircraft components. The company generated fiscal 2009 revenue of $762 million and net income of $163 million.  ©2010 GlobalFastenerNews.com

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