Triumph Group, Inc. [TGI] on Monday said it has agreed to sell its aerospace composites businesses to Arlington Capital Partners
, part of the company’s ongoing efforts to divest its non-core operations and buy down debt.
Terms of the deal were not disclosed. Jefferies aerospace and defense analyst Sheila Kahyaoglu estimated in a note to clients that the sale proceeds could be around $60 million.
Triumph’s composite operations include 800,000 square feet of factory space in Georgia and Thailand and provide structural and engine fabrications for commercial, business jet and military aircraft. Programs supported by the operations include Boeing’s [BA] 787 and 777 commercial planes, the V-22 tiltrotor military aircraft, the Airbus A320, A330 and A350 passenger planes, the Embraer [ERJ] E-2 commercial plane, the Northrop Grumman [NOC] Global Hawk unmanned aircraft system, and the General Dynamics [GD] Gulfstream G650 and G700 business jets.
“With the sale of Triumph’s composites business, Triumph continues to execute on its previously announced Aerospace Structures strategic review,” the company’s Daniel Crowley, president and CEO, said in a statement.
Triumph has divested 13 non-core businesses, including the composites operation, as part of its ongoing transformation.
The transaction is expected to close during the third quarter of 2020. Lazard is Triumph’s financial adviser on the deal.