CLEVELAND /PRNewswire/ -- TransDigm Group Inc., announced that it has entered into a definitive agreement to acquire Harco Laboratories Inc., for approximately $84 million in cash. The acquisition, subject to review under the Hart-Scott-Rodino Act and other customary closing conditions, is expected to close late in the first quarter of fiscal 2012. Harco, located in Branford, CT, manufactures proprietary, highly engineered components for major commercial aircraft. The major platforms include the Boeing 747/767/ 777, the Airbus A319/320/321, the ERJ 170/190, and various ground-based aero derivative turbines. The company had fiscal 2011 revenues of approximately $37 million, with aftermarket making up approximately 60% of the revenue.
Harco designs and manufactures highly engineered thermocouples, sensors, engine cable assemblies, and related products. These products are found on engines manufactured by Pratt & Whitney, Rolls Royce, International Aero Engines, Honeywell, and others. The commercial market comprises over 90% of the company's 2011 revenues, with the balance coming from the military.
W. Nicholas Howley, Chairman and CEO of TransDigm Group Inc. stated, "Harco is a long-established proprietary business, with significant aftermarket content and very modest military exposure. The highly engineered products are a good fit with our overall strategy and also allow us to expand our content for certain engine applications. We see significant value-creation opportunities through our proven value-creation methodology."
TransDigm Group Inc., through its wholly owned subsidiaries, is a leading global designer, producer, and supplier of highly 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, aircraft audio systems, specialized lavatory components, engineered interior surfaces, and lighting and control technology.