TransDigm to acquire PneuDraulics, Inc.

TransDigm Group Incorporated announced today that it has entered into a definitive agreement to acquire PneuDraulics, Inc. ("PneuDraulics" or "the Company") for approximately $325 million in cash. The purchase price includes approximately $107 million of tax benefits to be realized by TransDigm over a 15 year period beginning in 2015. TransDigm expects to finance the acquisition through existing cash on hand.

Located in Rancho Cucamonga, California, PneuDraulics employs approximately 275 people. The Company manufactures proprietary, highly engineered aerospace pneumatic and hydraulic components and sub-systems for commercial transport, regional, business jet and military applications. Nearly 100% of the revenues are proprietary. Aftermarket content accounts for approximately 35% of the revenues, while commercial aerospace content accounts for approximately 85% of the revenues.

W. Nicholas Howley, Chairman and CEO of TransDigm Group Incorporated, stated, "PneuDraulics is a long standing manufacturer of proprietary, sole source products with established positions on a number of high use platforms, strong aftermarket content and an outstanding reputation. The highly engineered products will allow us to expand our content on a number of substantial platforms, including Boeing 787 and Airbus A350. PneuDraulics fits well with our consistent product and acquisition strategy. As with all TransDigm acquisitions, we see opportunities for significant value creation."

The acquisition, which is expected to close before the end of fiscal year 2015, is subject to regulatory approvals and customary closing conditions.

Houlihan Lokey served as exclusive financial advisor to PneuDraulics.