TransDigm Group Completes Fastener Divestiture
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CLEVELAND, March 9, 2011 - TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, announced today that it has completed the divestiture of its fastener businesses to Alcoa Inc. (NYSE: AA) for approximately $240 million.
These businesses, which were acquired in December 2010 as part of the McKechnie Aerospace acquisition, are made up of Valley-Todeco Inc. and Linread Ltd. The businesses design and manufacture fasteners, fastening systems and bearings for commercial, military and general aviation aircraft.
Total after tax cash proceeds from this transaction are estimated to be approximately $170 million.
W. Nicholas Howley, TransDigm Group's Chairman and Chief Executive Officer commented, "Compared to our previous guidance, revenues will be down slightly while EBITDA As Defined is estimated to be flat to modestly up. The divestiture of the fastener business is offset primarily by stronger operating performance at the remaining McKechnie businesses.
"Additionally, we are in the process of obtaining a third party valuation of certain tangible and intangible assets which we expect to be completed by the end of our second quarter. We are neither updating nor confirming any other aspects of the prior guidance and will not do so until we announce earnings for our second fiscal quarter."
UBS Securities LLC assisted TransDigm as a financial advisor in the sale.
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, 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, aircraft audio systems, specialized cockpit displays, engineered latching and locking devices, specialized lavatory components, engineered connectors and elastomers, rods and locking devices, NiCad batteries/chargers, and lighting and control technology.
Non-GAAP Information
EBITDA As Defined is a non-GAAP financial measure presented in this press release as supplemental disclosures to net income and reported results. TransDigm Group defines EBITDA as earnings before interest, taxes, depreciation and amortization and defines EBITDA As Defined as EBITDA plus certain non-operating items, acquisition-related costs, transaction-related costs and non-cash charges incurred in connection with certain employee benefit plans. Further information regarding EBITDA As Defined and a reconciliation of EBITDA As Defined to Net Income can be found in TransDigm Group's Annual Report on Form 10-K and any other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission.
SOURCE TransDigm Group Incorporated
CONTACT: Jonathan D. Crandall, Investor Relations, +1-216-706-2945, ir@transdigm.com
Web Site: www.transdigm.com
