TransDigm Group Incorporated has announced plans to acquire CPI's Electron Device Business in a deal valued at $1.385 billion. The agreement was made public today, and is expected to be finalized by the third fiscal quarter of 2024, pending regulatory approvals in both the US and UK.
Kevin Stein, TransDigm's CEO, highlighted the strategic alignment of this acquisition with their focus on high aftermarket content revenues. This is reflected in CPI's Electron Device Business which primarily serves the aerospace and defense market, and reported $300 million in revenue for its fiscal year ending September 30, 2023. Notably, approximately 70% of its revenue comes from aftermarket sales of proprietary products.
The business currently operates manufacturing facilities in Palo Alto and Woodland, California; Beverly, Massachusetts; Middlesex, UK and employs around 900 individuals. This acquisition will further strengthen TransDigm’s presence in these regions, particularly in the aerospace and defense market.
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