Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

In an all cash deal, TransDigm Group Incorporated (TDG - Analyst Report) will be acquiring the assets of General Electric Company (GE - Analyst Report) Aviation’s Electromechanical Actuation Division for roughly $150 million. Subject to regulatory requirements, the transaction is expected to close by the end of the third quarter of 2013.

Post-acquisition, TransDigm will operate the business through a new unit, Whippany Actuation Systems. Based in Whippany, NJ, this company primarily engages in manufacturing flagship aerospace electromechanical motion control subsystems for civil and military applications.

The acquisition is a part of TransDigm’s long-term strategy to acquire aerospace businesses with significant aftermarket content. In addition, GE Aviation's Electromechanical Actuation Division’s products are used on many commercial platforms with OEM and aftermarket growth opportunities. Therefore, the business perfectly complements the existing business of Whippany Actuation Systems. For 2013, Whippany revenues are expected at $80 million, out of which aftermarket sales will contribute about 40% and commercial market will account for 50%.    

GE Aviation is the world's leading producer of large and small jet engines for commercial and military aircraft. The company’s engines are primarily used by leading aerospace and aircraft manufacturing companies like The Boeing Company (BA - Analyst Report), Precision Castparts Inc. (PCP - Analyst Report), Airbus etc for commercial end use. These engines also align well with Whippany’s product offerings and customers. Whippany’s product offerings include control electronics, motors, high power mechanical transmissions and actuators. 

TransDigm has been acquiring aerospace companies of late. In Apr 2013, TransDigm had acquired Aerosonic for approximately $39 million. Through this acquisition, TransDigm intends to leverage Aerosonic’s proprietary air data and display technologies with the help of its broad market presence and financial strength, thereby enhancing its growth prospects. In June, the company closed the acquisition of Arkwin Industries, Inc. in an all cash transaction worth approximately $286 million. Through this acquisition, TransDigm intends to leverage Arkwin’s highly engineered aerospace hydraulic and fuel system components for commercial and military aircraft, helicopters and other specialty applications, thereby enhancing its growth prospects.

TransDigm currently has a Zacks Rank #3 (Hold). 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
SKECHERS USA SKX 38.53 +4.50%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%