TransDigm Group Inc. [TDG] on Tuesday said it has agreed to acquire Data Device Corporation (DDC) from its private equity owner Behrman Capital for $1 billion in cash, adding engineered products with substantial aftermarket content to its portfolio.
The acquisition is expected to close during the third quarter.
DDC is expected to have more than $200 million in sales this year, with 75 percent coming from the defense market and the rest from commercial aerospace. About 70 percent of DDC’s revenue comes from the aftermarket, with almost all of that from proprietary and sole source products. About 45 percent of the company’s sales comes from international customers.
“DDC has a strong presence across major military aircraft platforms and a growing presence on commercial aircraft,” W. Nicholas Howley, chairman and CEO of TransDigm, said in a statement. “This is another sizeable acquisition opportunity that meets our strategic, operational and value creation criteria.”
DDC designs and supplies databus and power controls and related products that are mainly used in military avionics, commercial aerospace and space applications. The company’s products are on programs such as the F-35 Joint Strike Fighter, F/A-18 fighter, Eurofighter, C-130 transport, A400M transport, F-15 fighter, AH-64 Apache attack helicopter, and the 785, A350XWB and 777X commercial planes.
Behrman Capital acquired DDC in 2003 and since then has made four strategic add-on acquisitions to the company.