TransDigm Group Incorporated (NYSE: TDG) announced today that it has completed the acquisition of Skandia Inc. ("Skandia") from Graycliff Partners LP for a total purchase price of approximately $84 million, including the assumption of debt.
Skandia, headquartered in Davis Junction, Illinois, is a leading provider of highly engineered seating foam, foam fabrication, flammability testing and acoustic solutions for the business jet market. Annual revenues are approximately $26 million, and the company currently employs 70 people. Nearly 85% of revenues are derived from the business jet market with the remainder from commercial aerospace applications. The company's products are primarily proprietary and sole source with over 50% of revenues derived from aftermarket content. Skandia is on all major business jet platforms, including those of Bombardier, Cessna, Dassault, Embraer and Gulfstream.
W. Nicholas Howley, Executive Chairman of TransDigm Group Incorporated, stated, "Skandia is a long standing supplier of proprietary, sole source products with established positions on nearly all business jet platforms, strong aftermarket content and an outstanding reputation with its customers. Skandia fits well with our consistent product and acquisition strategy. As with all TransDigm acquisitions, we expect the Skandia acquisition to create equity value in-line with our long-term private equity type return objectives."
Houlihan Lokey served as exclusive financial advisor to Skandia.