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TransDigm To Buy Esterline Technologies In $4 Bln Deal - Quick Facts

TransDigm Group Inc. (TDG) has agreed to acquire all the outstanding shares of common stock of Esterline Technologies Corp. (ESL) for $122.50 per share in cash, the two companies said Wednesday.

The per share offer price represents a 38 percent premium to Esterline's closing price on October 9, 2018, or a total transaction value of about $4.0 billion including the assumption of debt.

TransDigm noted that the acquisition of Esterline will expands its platform of proprietary and sole source content for the aerospace and defense industries, including significant aftermarket exposure.

The transaction, approved by the boards of directors of both companies, is expected to complete in the second half of calendar 2019.

TransDigm said it expects the acquisition to be financed primarily through cash on hand and the incurrence of new term loans. It currently anticipates the acquisition to be modestly accretive to its adjusted earnings per share within the first year of ownership.

Bellevue, Washington-based Esterline, with anticipated fiscal year 2018 revenue of about $2.0 billion, consists of 28 business units organized across eight platforms to deliver specialty aerospace, defense and industrial products. The company employs over 12,500 employees in more than 50 operating locations throughout the world.

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