Esterline to be acquired by TransDigm for approximately $4 billion

CLEVELAND, OH and BELLEVUE, WA. TransDigm Group Incorporated officials entered into a definitive agreement to purchase Esterline Technologies Corp. TransDigm expects the acquisition to be financed primarily through cash on hand and the incurrence of new term loans, and currently anticipates the acquisition to be modestly accretive to TransDigm’s adjusted earnings per share within the first year of ownership.

Under the agreement, TransDigm will purchase all of the outstanding shares of common stock of Esterline for $122.50 per share in cash, which represents a premium of 38 percent to Esterline’s closing price on October 9, 2018, or a total transaction value of approximately $4.0 billion including the assumption of debt.

The acquisition of Esterline expands TransDigm’s platform of proprietary and sole source content for the and industries, including significant aftermarket exposure. Headquartered in Bellevue, Washington, Esterline consists of 28 business units organized across eight platforms to deliver specialty aerospace, defense, and industrial products. The company employs over 12,500 employees in more than 50 operating locations throughout the world.

The acquisition will be financed through a combination of existing cash on hand of approximately $2 billion and the incurrence of new term loans. The transaction is subject to customary closing conditions, including Esterline stockholder approval and the receipt of required regulatory approvals. The companies expect to complete the transaction in the second half of calendar 2019.

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