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Triumph Divests Aerospace-Systems Newport News to Calspan

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Triumph Group, Inc.(TGI - Free Report) announced that its subsidiary, Triumph Aerospace-Systems Newport News, Inc., was acquired by Calspan Holdings, the parent company of Cheektowaga-based Calspan Corp. The deal was completed on Sep 30. However, the value of the deal was kept under wraps.

Details of the Transaction

Under the agreement, Triumph Aerospace-Systems will hereafter be referred to as Calspan Systems Corp. Calspan Holdings intends to combine Triumph Aerospace-Systems with its research and development portfolio due to the similarity in their operations. Moreover, the acquisition is expected to boost Calspan Holdings’ position in the thriving aerospace engineering, testing and designing markets.

Rationale Behind the Sale

The sale came as part of management’s efforts on streamlining the company’s business structure to reduce costs and support its “go-to-market strategies.” The divestment will also aid the company to focus better on its core businesses and improve efficiency in the process.


About Triumph Group

Triumph Group offers a variety of products and services to the aerospace industry. Notably, Triumph Aerospace-Systems specializes in engineering and manufacturing of complex hardware and prototype systems for ground test and flight applications. These systems are used in various high-tech fields, including the aerospace industry. For the fiscal year ended Mar 31, 2016, Triumph Aerospace-Systems has contributed nearly $18 million to the company’s net sales.

Zacks Rank & Key Picks

Triumph Group currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the aerospace sector include CAE Inc. (CAE - Free Report) , Ducommun Inc. (DCO - Free Report) and Spirit AeroSystems Holdings, Inc. (SPR - Free Report) . All the three stocks sport a Zacks Rank#1(Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

CAE has delivered an average positive earnings surprise of 10.6% in the trailing four quarters.

Ducommun has witnessed an increase of 1.5% and 4.3% in the Zacks Consensus Estimate for earnings for 2016 and 2017, respectively, over the last 60 days.

Spirit AeroSystems has delivered an average positive earnings surprise of 8.2% in the trailing four quarters.

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