Warburg Pincus, a leading global private equity firm focused on growth investing, today announced that funds affiliated with the firm have entered into a definitive agreement to sell Extant Components Group Holdings, Inc. ("Extant" or "the Company"), a leading provider of proprietary, aftermarket-focused avionics, electronics, and electromechanical products for the aerospace and defense markets, to TransDigm Group Incorporated ("TransDigm") (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, for approximately $525 million in cash.
Headquartered in Melbourne, Florida, Extant was formed in 2010 by seasoned aerospace executive James Gerwien in partnership with Warburg Pincus to specialize in the engineering, manufacturing, repair and overhaul of aftermarket components utilized on military and commercial aircraft. The Company supports aerospace and defense original equipment manufacturers (OEMs) by licensing or acquiring their mature, non-core electronics and electro-mechanical products and supporting the long remaining life of these products, as well as any remaining forward fit production. Since its founding, Extant has successfully built a diverse portfolio of over 2,500 proprietary, aftermarket-focused assemblies and sub-assemblies on over 70 active platforms supporting more than 400 leading military and commercial customers.
Dan Zamlong, Managing Director, Warburg Pincus, said, "Extant has established a market-leading position in the aftermarket aerospace components sector, supporting numerous leading OEM licensing partners and serving hundreds of military and commercial customers. It was a pleasure to partner with Jim Gerwien and his team and we thank them for their exceptional dedication to building the business over the last eight years. We are confident in Extant's future growth and we wish the company continued success under TransDigm's ownership."
James Gerwien, Founder and CEO of Extant Aerospace, said, "We are proud to have grown Extant into a leading, one-of-a-kind provider of aftermarket support and solutions across the aerospace and defense markets. We have built a diverse portfolio of products and established longstanding, trusted partnerships and customer relationships with the industry's leading OEMs. We thank Warburg Pincus for their partnership and support, and look forward to becoming part of TransDigm and leveraging their scale and capabilities to further advance Extant's strong growth trajectory."
Extant was advised by Lazard, Wells Fargo Securities, Willkie Farr & Gallagher LLP, and Eversheds Sutherland (US) LLP. The transaction is expected to close in the second quarter of 2018 and is subject to customary closing conditions and approvals.