TransDigm announces the acquisition of Raptor Scientific

CLEVELAND, May 28, 2024 /PRNewswire/ — TransDigm Group Incorporated (NYSE: TDG) announced today that it has entered into a definitive agreement to acquire Raptor Labs Holdco, LLC (“Raptor Scientific” or the “Company”), a portfolio company of L Squared Capital Partners, for approximately $655 million in cash, including certain tax benefits.

Raptor Scientific is a leading global manufacturer of complex test and measurement solutions primarily serving aerospace and defense end markets. The company’s products are technologically advanced, proprietary components that have a significant share of the aftermarket and are present on major aerospace and defense platforms. Nearly all of Raptor Scientific’s revenues are generated from proprietary products. The Company is expected to generate approx 90 million dollars in revenues for the ending calendar year December 31, 2024. The company employs approximately 170 people and has production plants in Livermore, California; Woodland Hills, California; Berlin, Connecticut; Huntsville, AL; AND Peterborough, NH.

Kevin Steinpresident and CEO of TransDigm, stated: “We are excited about the acquisition of Raptor Scientific. The company’s comprehensive, proprietary and technically advanced product portfolio of aerospace and defense testing and instrumentation solutions aligns well with our value creation strategy. Testing and Instrumentation Raptor Scientific measurement solutions are used in a variety of new and existing aerospace platforms, and the Company enjoys an excellent reputation among its customers. As with all TransDigm acquisitions, we expect this acquisition to generate capital value consistent with our long-term private equity capital-like return objectives.”

The acquisition requires approvals from regulatory authorities United States and customary closing conditions. The acquisition is expected to be financed with existing cash resources.

About the TransDigm Group

The TransDigm Group, through its wholly owned subsidiaries, is a leading global designer, manufacturer and supplier of technically advanced aerospace components for use in almost all commercial and military aircraft in service today. The core product offering, substantially all of which are ultimately delivered to end users in the aerospace industry, includes mechanical/electromechanical actuators and controls, ignition systems and engine technology, specialty pumps and valves, power conditioning equipment, specialty AC/DC electrical motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered elastomer connectors and sealing solutions, data buses and power controls, cockpit safety components and systems, specialized and advanced cockpit displays, engineered audio, radio and antennas, specialized toilet components, seat belts and safety devices, custom designed and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting equipment and cargo, loading, handling and delivery systems, and specialized flight, wind tunnel and jet engine testing services and equipment.

Forward-looking statements

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “may,” “will,” “should” , “expect,” “intend,” “plan,” “anticipate,” “predict,” “estimate” or “continue” and other words and terms of similar meaning may identify forward-looking statements. All forward-looking statements involve risks and uncertainties that could cause TransDigm Group’s actual results to differ materially from those expressed or implied by any forward-looking statements made by or on behalf of TransDigm Group. These risks and uncertainties include, but are not limited to: the sensitivity of our business to the number of flight hours that our customers’ aircraft spend in the air and the profitability of our customers, which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be reflected in product prices; failure to complete or successfully integrate acquisitions; our debt; current and future geopolitical or other global developments, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical effects of climate change and other natural disasters or meeting voluntary sustainability-related goals or regulatory requirements; our dependence on certain customers; United States (“US”) defense budget and risks associated with being a government supplier, including government audits and investigations; failure to secure governmental or industry approvals; risks related to changes in laws and regulations, including increases in compliance costs; potential environmental liabilities; liabilities arising in connection with court disputes; risks and costs associated with our international sales and operations; and other factors. Further information regarding important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group’s most recent Annual Report on Form 10-K and in other reports filed by TransDigm Group or its subsidiaries with the Securities Exchange Commission and Stock Exchanges. Except as required by law, TransDigm Group undertakes no obligation to revise or update any forward-looking statements contained in this press release.

Contact:
Investor Relations
(216) 706-2945
(email protected)

SOURCE TransDigm Group Inc.