TransDigm Completes Acquisition of Raptor Scientific
Rhea-AI Summary
TransDigm Group Incorporated (NYSE: TDG) has successfully completed its acquisition of Raptor Labs Holdco,
Raptor Scientific is a leading global manufacturer of complex test and measurement solutions, primarily serving the aerospace and defense end markets. The company's products are highly engineered, proprietary components with significant aftermarket content and a strong presence across major aerospace and defense platforms. Raptor Scientific is expected to generate approximately $90 million in revenue for the calendar year ending December 31, 2024.
Positive
- Acquisition of Raptor Scientific for $655 million, expanding TransDigm's market presence
- Raptor Scientific's expected revenue of $90 million for 2024
- Acquisition of proprietary products with significant aftermarket content
- Strengthening presence in aerospace and defense markets
- Cash-financed acquisition, indicating strong liquidity position
Negative
- Large cash outlay of $655 million may impact short-term liquidity
- Potential integration challenges and costs associated with the acquisition
News Market Reaction
On the day this news was published, TDG gained 2.38%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Raptor Scientific is a leading global manufacturer of complex test and measurement solutions primarily serving the aerospace and defense end markets. The Company's products are highly engineered, proprietary components with significant aftermarket content and a strong presence across major aerospace and defense platforms. Nearly all of Raptor Scientific's revenue is generated from proprietary products. The Company is expected to generate approximately
About TransDigm Group
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. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, and electronic components used in the generation, amplification, transmission and reception of microwave signals.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "may," "will," "should," "expect," "intend," "plan," "predict," "anticipate," "estimate," or "continue" and other words and terms of similar meaning may identify forward-looking statements. All forward-looking statements involve risks and uncertainties that could cause TransDigm Group's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitical or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate change and other natural disasters or meeting sustainability-related voluntary goals or regulatory requirements; our reliance on certain customers;
Contact:
Investor Relations
(216) 706-2945
ir@transdigm.com
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SOURCE TransDigm Group Inc.
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