TransDigm Group Inc.’s $525 Million Acquisition of Extant Components Group Holdings, Inc.


Willkie advised Extant Components Group Holdings, Inc. on the transaction

ransDigm Group Incorporated (NYSE: TDG) announced today that it has entered into a definitive agreement to acquire Extant Components Group Holdings, Inc. (“Extant”), a portfolio company of Warburg Pincus LLC, for approximately $525 million. TransDigm expects to finance the acquisition primarily through a combination of cash on hand and existing availability under its revolving credit facility.

For the fiscal year ending September 2018, Extant expects to derive 80% of its revenue from the aftermarket, with nearly all of the revenue from proprietary and sole source products. The revenue is derived from a mix of military and commercial applications, with the majority of the revenue coming from the military end market.

Located in Melbourne, Florida, Extant employs more than 170 people and expects to generate revenue of approximately $85 million for the fiscal year ending September 2018. Extant provides a broad range of proprietary aftermarket products and repair and overhaul services to the aerospace and defense end markets. The company exclusively licenses or acquires proprietary aftermarket-focused products from leading aerospace and defense OEMs. Extant then supports these products over the significant remaining useful lives of the aircraft on which the equipment is installed. The company currently owns or exclusively licenses in excess of 2,500 assemblies and sub-assemblies on over 70 active platforms. Extant offers an attractive value proposition to OEMs and as a result has an active pipeline of new product line acquisition opportunities.

Extant’s largest platforms include the F-16, AH-64, F-18, F-15, and C-130. Commercial platforms include the King Air series, MD 900/902, B747, B757 and B777. The company also has content on key business jet platforms such as the Bombardier Learjet family, Cessna Citation family, and various Gulfstream aircraft.

Willkie advised Extant Components Group Holdings, Inc. with a team including Steven Gartner (Picture), Russell Leaf, Jordan Messinger, Jeffrey Daniel and Justin Sommerkamp.

Involved fees earner: Steven Gartner – Willkie Farr & Gallagher; Russell Leaf – Willkie Farr & Gallagher; Jeffrey Daniel – Willkie Farr & Gallagher; Justin Sommerkamp – Willkie Farr & Gallagher; Jordan Messinger – Willkie Farr & Gallagher;

Law Firms: Willkie Farr & Gallagher;

Clients: Extant Components Group Holdings, Inc. ;

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Author: Ambrogio Visconti