Radnor-based Triumph Group, a designer, developer, manufacturer and repairer of aerospace and defense systems and components, recently completed the sale of its Product Support business to AAR Corporation for $725 million.
The Product Support business is a maintenance, repair and overhaul (MRO) company, working on airframe and engine accessories for the commercial and military aftermarkets. It has five primary locations.
“We are pleased to complete this transformative divestiture which delivers immediate and substantial value to Triumph and our stakeholders,” Dan Crowley, Triumph’s chairman, president and CEO, said. “This transaction enables 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. 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 expects to profitably grow in the expanding markets we serve.”
Net after-tax proceeds are expected to be approximately $700 million.
Once the deal closes, the company will have 21 locations and employ approximately 4,500 people. More than 60 percent of the company’s products and services will be based on Triumph intellectual property with 90 percent supplied on a sole-sourced basis.