Radnor-based Triumph Group, an aerospace and defense systems and components company, recently entered into a definitive agreement with Chicago area-based AAR CORP., an aerospace and defense aftermarket solutions company, to sell its Product Support business.
The Product Support business has five locations and services commercial and military aftermarkets. It is a Maintenance, Repair and Overhaul (MRO) business, working on structures, airframe and engine accessories. In the 12 months ending on Sept. 30, the business generated approximately $268 million in revenue.
The transaction is valued at $725 million with net after-tax proceeds expected to be approximately $700 million.
“This transaction creates a win-win-win arrangement between TRIUMPH, AAR, and our customers by enabling TRIUMPH to greatly accelerate our deleveraging progress while placing our third-party Product Support business with a market-leading MRO company that has a proven track record of customer support” Dan Crowley, TRIUMPH chairman, president, and CEO, said. “By strengthening our balance sheet and focusing on our OEM component, spares and IP-based aftermarket business, TRIUMPH will further improve its capacity to win and profitably grow in the expanding markets we serve.”
The deal is expected to close during the first quarter. Once completed, TRIUMPH will have four engineered systems components and aftermarket companies.