TransDigm Group acquires Kirkhill (elastomers business)

TransDigm Group acquired Kirkhill (elastomers business) for $50 million in cash (subject to adjustment), a transaction completed in March 2018, structured as all cash. The deal was a Asset purchase / carve-out.

Kirkhill (elastomers business) operates in Airframe, is based in Brea, California, had revenue of about approximately $90 million. Brea, California-based supplier of highly engineered aerospace elastomers, acquired from Esterline Technologies. Annual revenue about $90 million; about 800 employees; about 50% commercial transport airframes, remainder defense aerospace. Primarily proprietary, sole source with significant aftermarket; on Boeing 787/777X/737MAX, Airbus A320NEO/A350 and the military JSF.

Kirkhill's primarily proprietary, sole source aerospace elastomers with significant aftermarket content fit well with TransDigm's business strategy.

Proprietary, sole-source aerospace elastomers on major Boeing/Airbus/JSF platforms

Kirkhill products fit well with our business strategy. Although the improvements could take a little longer to develop than for some acquisitions, we see significant opportunities to improve Kirkhill's profitability. We expect the Kirkhill acquisition to create equity value well in line with our long term private equity type return objectives.W. Nicholas Howley, Chairman and Chief Executive Officer, TransDigm Group

Advisory firms were not disclosed for this transaction.

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