TransDigm Group [TDG] on Thursday said has agreed to acquire aircraft lift device manufacturer Breeze-Eastern Corp. for $206 million, giving it proprietary products with aftermarket content.
TransDigm expect to begin a cash tender offer for Breeze-Eastern’s shares by Dec. 3, although Breeze-Eastern and its financial advisers will continue to solicit superior proposals from third parties during the next 40 days. The tender offer won’t be closed until Breeze-Eastern’s “go-shop” period is completed.
New Jersey-based Breeze-Eastern designs and manufactures lifting and pulling devices for military and civilian aircraft, including rescue hoists, winches and cargo hooks, and weapons-lifting systems. The company has 172 employees.
“Breeze-Eastern pioneered the technology for helicopter rescue hoists and cargo winches and subsequently became a leading global designer and manufacturer of highly engineered, proprietary rescue hoists, winches and cargo hooks, as well as weapons-handling systems equipment, which can currently be found on all types of military and civilian aircraft,” W. Nicholas Howley, chairman and CEO of TransDigm, said in a statement. He said that about 75 percent of Breeze-Eastern’s sales are from military markets and 70 percent of sales are from aftermarket products.
“We are pleased to have an agreement to acquire Breeze-Eastern given that the proprietary nature of these products, along with significant aftermarket content, fits well with our overall business strategy,” Hawley said.
Breeze-Eastern’s customers include Airbus Group, Boeing [BA], the AgustaWestland division of Italy’s Finmeccanica, Lockheed Martin’s [LMT] Sikorsky unit, and the United States Government.
The deal is subject to anti-trust review and the tender of a majority of Breeze-Eastern’s shares.
Breeze-Eastern’s financial adviser is Harris Williams & Co.