Transdigmrsquos portfolio of companies includes more than 20 manufacturers of aerospace parts and components and supplies most commercial and military aircraft now in service AeroInstruments derives about 20 of its revenues from military contracts such as the FA18 Hornet fighter jet

TransDigm Adds Aero-Instruments Co.

Sept. 24, 2012
Aero-Instruments produces proprietary air data sensors TransDigm holdings supply mechanical/electro-mechanical actuators and controls, ignition systems, engine technology, etc.

Cleveland-based TransDigm Group Inc. has purchased Aero-Instruments Co., LLC for approximately $35 million, in cash. Aero, also located in Cleveland, produces proprietary engineered components for aerospace systems.

Aero designs and manufactures air data sensors, including pitot probes, pitot-static probes, static pressure ports, angle of attack, temperature sensors and flight test equipment for use primarily in the business jet and helicopter markets. Most of its revenue is derived from the aftermarket. About 20% of its revenues are from military contracts.

TransDigm is a holding company for numerous wholly owned subsidiaries that produce engineered aircraft components. Its products are in place on most commercial and military aircraft now in service.

Major product offerings include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and lighting and control technology.

This is the second significant acquisition for Transdigm this year. Earlier it acquired AmSafe Global Holdings Inc, a producer of passenger seatbelts and airbags. It paid $750 million in cash to Berkshire Partners LLC and Greenbriar Equity Group LLC.

Speaking of Transdigm on the occasion of the AmSafe purchase, Michael Callahan, senior equity analyst at Auriga USA, told Investors Business Daily: "Management does an outstanding job of squeezing profits from acquired businesses. They buy up aircraft components suppliers who have a sole-source position on major OEM platforms, therefore having control over the aftermarket supply chain over the course of the next 30 years as that plane is in service. That gives them a tremendous amount of pricing power, and that's what they've done very well for the past 20 years or so."

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)

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