TransDigm Group To Buy Stellant Systems For $960M To Expand Aircraft Component Portfolio

• Stellant makes and designs high-power electronic components and subsystems for the aerospace and defense markets.
• The closing of the transaction will be subject to regulatory approvals and customary closing conditions.
• TransDigm CEO Mike Lisman said that the transaction is aimed at adding more products and services to its portfolio.

Aircraft component maker TransDigm Group Incorporated (TDG) on Wednesday announced that it has entered into an agreement to buy Stellant Systems for about $960 million in cash, including certain tax benefits.

TDG shares traded more than 1% higher at the time of writing.

Acquisition Intent

Stellant Systems was formed in October 2021 when private equity firm Arlington Capital Partners (ACP) acquired L3Harris Technologies' Electron Devices and Narda Microwave-West divisions, combining them into the new independent company. The company now makes and designs high-power electronic components and subsystems for the aerospace and defense markets. It is expected to generate about $300 million in revenue for the calendar year 2025.

TransDigm CEO Mike Lisman said that the transaction is aimed at adding more products and services to its portfolio. The company currently designs, produces and supplies aircraft components for use on nearly all commercial and military aircraft in service today.  

“As with all TransDigm acquisitions, we expect this acquisition to create equity value in-line with our long-term private equity-like return objectives," Lisman added. The closing of the transaction will be subject to regulatory approvals and customary closing conditions.

According to TransDigm, Stellant’s proprietary components have a strong presence across major aerospace and defense platforms and nearly all of the company's revenue is generated from proprietary products. Stellant employs about 950 people and has manufacturing locations in California, Pennsylvania, New York and Massachusetts.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TDG stayed within the ‘neutral’ territory at the time of writing while message volume stayed at ‘low’ levels.

TDG stock has gained over 5% this year. 

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