Feb 1 2011
Alcoa (NYSE:AA) announced today it has agreed to purchase the aerospace fastener business of TransDigm Group Inc., a leading global designer, producer and supplier of highly engineered aircraft components.
The new business will become part of Alcoa Fastening Systems. The transaction is valued at approximately $240 million and is expected to be earnings and cash flow accretive in the first year.
“This acquisition is an important step for Alcoa Fastening Systems (AFS), said Vitaliy Rusakov, President, Alcoa Fastening Systems. “It is a part of our strategic plan to accelerate the growth of our business, add efficiencies, broaden our technology base and expand our product offering to better serve our customers and increase shareholder value. The TransDigm global aerospace fastener business offers a strong portfolio of complementary products and is well known in the aerospace industry for producing highly engineered precision fastening solutions used for critical airframe, engine and equipment applications.”
TransDigm acquired the fastener business when it purchased McKechnie Aerospace in December 2010.
The three TransDigm fastener manufacturing facilities are located in Sylmar, California; and Redditch and Leicester, both of the United Kingdom, and employ a combined 400 people. Since they were founded in 1925 and 1950s respectively, the Redditch, Sylmar and Leicester facilities have provided a wide variety of high-strength, high temperature nickel alloy specialty engine fasteners, airframe bolts and slotted entry bearings.
The transaction is expected to be completed during the first quarter of 2011, subject to customary regulatory reviews and approvals. Employment levels will remain the same.