TransDigm to buy Data Device Corporation for USD1.0bn

TransDigm Group Incorporated (NYSE: TDG) has agreed to purchase ILC Holdings, Inc., the parent company of Data Device Corporation, from Behrman Capital for a total purchase price of USD1.0 billion in cash, the company said.

DDC is a leading supplier of databus and power supply products for the global military and commercial aerospace markets. TransDigm expects to finance the acquisition through a combination of cash on hand, existing availability under our revolving credit facility and new debt.

DDC revenues are anticipated to be over USD200 million for the fiscal year ending December 2016 with approximately 75 percent coming from the defense market and the remainder primarily from the commercial transport market. Approximately 70 percent of revenue is derived from the aftermarket, with nearly all of the revenue from proprietary and sole source products. Approximately 45 percent of revenue is derived from customers outside of the United States.

DDC supplies databus and power controls and related products that are used primarily in military avionics, commercial aerospace and space applications. The company´s core MIL-STD-1553 databus product line has a large installed base of systems worldwide that spans hundreds of unique military and commercial platforms.

The acquisition, which is expected to close before the end of fiscal 2016, is subject to regulatory approvals and customary closing conditions.

TransDigm Group, through its wholly owned subsidiaries, designs, produces, and supplies engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, and aircraft audio systems.