Triumph Group Announces The Sale Of Its Composites Business To Arlington Capital Partners

Rhea-AI Summary

Triumph Group, Inc. (NYSE:TGI) has entered a definitive agreement to sell its composites operations to Arlington Capital Partners. This includes locations in Milledgeville, Georgia, and Rayong, Thailand. The move supports Triumph's strategic review to enhance liquidity and reduce debt, aiming to position the company as a leading provider of aerospace systems and services. The business spans 800,000 square feet and employs approximately 600 people, serving key programs for major clients like Boeing and Airbus. The transaction is expected to close in FY21's second quarter.

Positive

• The sale will reduce debt and enhance liquidity for Triumph Group.
• Aligns with Triumph's strategic review aimed at long-term success and margin enhancement.
• The composites business supports major aerospace programs, ensuring ongoing operational viability.

Negative

• Divesting the composites business may lead to reduced revenue from this segment.
• The sale represents the 13th divestiture since 2016, suggesting a focus on shedding non-core operations which may impact overall market perception.

BERWYN, Pa., Aug. 3, 2020 /PRNewswire/ -- Triumph Group, Inc. (NYSE:TGI) announced today a definitive agreement to sell its composites operations to Arlington Capital Partners. Included in the sale are the Triumph Aerospace Structures composites locations in Milledgeville, Georgia and Rayong, Thailand.

"With the sale of Triumph's composites business, Triumph continues to execute on its previously announced Aerospace Structures strategic review. This transaction will further reduce debt and enhance liquidity while moving the company towards its future state as a leading provider of systems and aftermarket service," said Daniel Crowley, Triumph Group, President and Chief Executive Officer. "We are excited to partner with Arlington Capital Partners who will benefit from the experienced workforce, significant capabilities, and embedded customer relationships at both factories."

The operations cover approximately 800 thousand square feet of factory space and employ approximately 600 people. The composites business provides structural and engine composite fabrications and assemblies across commercial, business jet, and defense platforms. Key programs supported by the sites include Boeing 787, 777 and V-22, Airbus A320, A330 and A350, Embraer E-2, Northrop Grumman Global Hawk, as well as the Gulfstream G650/700.

Since 2016, Triumph has divested 13 non-core businesses, including today's announcement, as part of its transformation efforts to de-lever the company, enhance margins and position the company for long-term success.

The transaction is subject to customary closing conditions and is expected to close in Triumph's second quarter of FY21. Following the close of the transaction, the business will retain its management, technical and supporting staff, and will continue operations at the current facilities.

Lazard acted as exclusive financial advisor to Triumph on the transaction.

About Triumph Group:
Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators.

More information about Triumph can be found on the company's website at http://www.triumphgroup.com.

About Arlington Capital Partners:
Arlington Capital Partners is a Washington, DC-based private equity firm that is currently investing out of Arlington Capital Partners V, L.P., a $1.7 billion fund. The firm has managed approximately $4.0 billion of committed capital via five investment funds. Arlington is focused on middle market investment opportunities in growth industries including aerospace & defense, government services and technology, healthcare, and business services and software. The firm's professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their Company's position as leading competitors in their field.
www.arlingtoncap.com

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SOURCE Triumph Group

FAQ

What is the significance of Triumph Group's sale of its composites operations to Arlington Capital Partners?

The sale will enhance Triumph Group's liquidity and reduce debt, supporting its strategic transformation.

When is the sale of Triumph Group's composites business expected to close?

The transaction is expected to close in the second quarter of FY21.

What locations are included in Triumph Group's composites business sale?

The sale includes operations in Milledgeville, Georgia, and Rayong, Thailand.

How many employees are affected by the sale of Triumph Group's composites business?

Approximately 600 employees are part of the composites operations being sold.