Esterline has attractive positions in both OEM and aftermarket platforms, TransDigm’s chairman noted, with “substantial content on many important commercial aircraft variants”, and many regional and business jet aircraft and major defense platforms.

TransDigm Buys Esterline Technologies for $4B

Oct. 10, 2018
Aerospace products holding company swings all-cash deal to expand its portfolio, including "significant aftermarket exposure"

Cleveland-based TransDigm Group Inc. has a deal to acquire Esterline Technologies Corp. for approximately $4.0 billion, an all-cash deal that has been approved by directors of both companies. The buyer, which is a holding company for numerous businesses designing and manufacturing commercial and military aircraft components and systems, said Esterline expands its current portfolio and brings with it "significant aftermarket exposure."

TransDigm’s products include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, AC/DC electric motors and generators, NiCad batteries and chargers, and may others

Esterline has three core business units — Advanced Materials; Avionics & Controls; and Sensors & Systems — supplying specialty aerospace, defense and industrial products. It has over 12,500 employees and more than 50 operations worldwide.

“We are pleased to have reached agreement to acquire a collection of businesses that fit well with our focused and consistent strategy,” stated W. Nicholas Howley, TransDigm's executive chairman.

“Esterline’s core aerospace and defense business consists of primarily proprietary, sole-source products with significant and growing aftermarket exposure. We view this as highly complementary to our existing business,” Howley continued.

The transaction is subject to customary closing conditions, including Esterline stockholder approval and required regulatory approvals. It is expected to be completed in the second half of 2019.

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