TransDigm to acquire Data Device Corp. for $1 billion

Cleveland, Ohio – TransDigm Group Inc. has a definitive agreement to purchase ILC Holdings Inc., the parent company of Data Device Corp. (DDC), from Behrman Capital, a private equity investment firm based in New York and San Francisco, for a total purchase price of $1.0 billion in cash. 

 

DDC supplies high-reliability data networking, power control, and motion control products for the global military and commercial aerospace markets, including the JSF, F-18, Eurofighter, C-130, A400M, F-15, Apache, the 787, A350XWB, and 777X. DDC’s primary manufacturing facility is located in Bohemia, New York, with additional facilities located in Mexico, the United Kingdom, and California. The business employs 650 employees worldwide.

 

DDC revenues are anticipated to be more than $200 million for the fiscal year ending December 2016 with approximately 75% coming from the defense market and the remainder from the commercial transport market. Approximately 70% of revenue is derived from the aftermarket, with nearly all of the revenue from proprietary and sole-source products. Approximately 45% of revenue is derived from customers outside of the United States. 

 

“This is another sizable acquisition opportunity that meets our strategic, operational, and value-creation criteria,” says W. Nicholas Howley, TransDigm's chairman and CEO. “We are pleased with the opportunity to acquire a business of this size that has such an outstanding reputation with its customers and where we see opportunities for significant value creation.” 

 

TransDigmexpects to finance the acquisition through a combination of cash on hand, credit, and new debt.

 

The acquisition, which is expected to close before the end of fiscal 2016, is subject to regulatory approvals and customary closing conditions.