Triumph Group announces the sale of fabrications business to Arlington Capital Partners, advancing transformation plan

Triumph Group, Inc. announced a definitive agreement to sell Triumph Fabrications to Arlington Capital Partners. The operations included in the agreement are in Fort Worth, Texas; Hot Springs, Arkansas; Phoenix, Arizona; San Diego, California; and Shelbyville, Indiana.

"With the sale of our Fabrications businesses, Triumph continues to execute on our transformation plan by streamlining our portfolio and exiting legacy build-to-print, contract manufacturing businesses to generate shareholder value," said Dan Crowley, Triumph Group President and CEO. "Today's announcement to divest non-core businesses such as Triumph Fabrications advances our strategy to focus on areas of growth and value creation, such as our Integrated Systems and Aftermarket businesses, while reducing our footprint and eliminating excess capacity and fixed costs. Importantly, we believe Arlington Capital Partners will make the necessary investments into the Fabrications business to accelerate its growth as a more focused operation."

Triumph Fabrications consists of four independent companies, which operate in five locations throughout the US. These sites encompass more than 1 million square feet of factory space dedicated to the aerospace industry by supporting complex sheet metal components and assemblies for fixed wing and rotorcraft platforms. The businesses offer forming, assembly and special processing solutions such as stretch, hydro, titanium hot/super plastic forming, bonding, bulge and drop hammer forming as well as chemical milling, welding, auto riveting, titanium Sol-Gel, anodizing and other coating processes. Combined, the businesses generated revenues of approximately $150 million during Triumph Group's fiscal year ended March 31, 2018.

Since 2016, Triumph has divested 10 non-core businesses, including today's announcement, as part of its transformation efforts to de-lever the company, enhance margins and position the company for long-term success.

The transaction is subject to customary closing conditions and is expected to close in the next few months. Following the close of the transaction, the business will retain its management, technical and supporting staff, and will continue operations at the current facilities.

Lazard acted as exclusive financial advisor to Triumph on the transaction.