Triumph Group Expands Aerospace Structures Divestitures To Arlington Capital Partners With Sale Of Its Red Oak Texas Operations

Rhea-AI Summary

Triumph Group (NYSE:TGI) has announced an agreement to sell its Red Oak, Texas operations to Arlington Capital Partners. This deal aims to reduce debt and enhance liquidity as Triumph exits large structures manufacturing. The Red Oak facility specializes in large composite and metallic structures manufacturing, covering 1.0 million square feet and employing approximately 400 staff. The transaction is subject to customary closing conditions and is expected to close in Triumph's fourth quarter of FY21.

Positive

• Sale of Red Oak operations reduces debt and enhances liquidity.
• Strategically aligns with Triumph's initiative to exit large structures manufacturing.

Negative

• None.

BERWYN, Pa., Feb. 10, 2021 /PRNewswire/ -- Triumph Group, Inc. (NYSE:TGI) announced today that it has entered into a definitive agreement to sell its Red Oak, Texas operations to Arlington Capital Partners. The sale includes the Red Oak facility, together with its thermoplastic engineering capabilities. Arlington Capital Partners will combine the Red Oak business with the composites facilities it is separately acquiring from Triumph pursuant to a previously announced agreement.

"With the sale of Triumph's Red Oak and composites operations, Triumph continues to execute on its strategic path to value initiative to exit large structures manufacturing and reduce our leverage. 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 services," said Daniel Crowley, Triumph's Chairman and Chief Executive Officer.

The Red Oak site specializes in the manufacture of large, complex composite and metallic structures such as wing, empennage, and fuselage assemblies. The operations cover approximately 1.0 million square feet of factory space and employ approximately 400 people.

Both the Red Oak and previously announced composites transactions are subject to customary closing conditions and are expected to close in Triumph's fourth quarter of FY21.

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

 

View original content:http://www.prnewswire.com/news-releases/triumph-group-expands-aerospace-structures-divestitures-to-arlington-capital-partners-with-sale-of-its-red-oak-texas-operations-301226526.html

SOURCE Triumph Group

FAQ

What operations is Triumph Group selling?

Triumph Group is selling its Red Oak, Texas operations.

Who is acquiring Triumph's Red Oak facility?

Arlington Capital Partners is acquiring Triumph's Red Oak facility.

What is the strategic reason behind Triumph's sale of Red Oak?

The sale aims to reduce debt and support Triumph's exit from large structures manufacturing.

When is the transaction expected to close?

The transaction is expected to close in Triumph's fourth quarter of FY21.

What does the Red Oak facility specialize in?

The Red Oak facility specializes in manufacturing large composite and metallic structures.