TransDigm Group Inc. (NYSE: TDG) has agreed to acquire Breeze-Eastern Corp. (NYSE: BZC) for $206 million, as M&A interest in aerospace parts manufacturers holds strong.
The purchase price works out to about $19.61 per share. Breeze-Eastern has 40 days to solicit proposals from other buyers.
Union, New Jersey-based Breeze-Eastern makes technology for helicopter rescue hoists, cargo hooks and weapons-handling systems equipment. The business' customers include Sikorsky Aircraft Corp. (NYSE: UTX), Boeing Co. (NYSE: BA), AgustaWestland Philadelphia Corp., Airbus (EPA: AIR) and the U.S. government.
TransDigm, headquartered in Cleveland, makes engineered plane parts including actuators, controls, ignitions systems, engine technology, pumps, valves, power conditioning devices, electric motors, batteries, locks, and other products. The business has made a handful of acquisitions, including Pexco LLC, which it paid $496 million for in May, and Arkwin Industries, which it bought for $286 million in 2013.
Baker & Hostetler LLP is TransDigm's legal adviser. Harris Williams & Co. is Breeze-Eastern's financial adviser, and Freshfields Bruckhaus Deringer US LLP is providing legal advice.
Dealmakers have exhibited continued interest in aerospace parts manufacturers as air travel rates increase and airlines upgrade their fleets. In August, Warren Buffett's Berkshire Hathaway made a $37.2 billion deal for Precision Castparts. For more, see As Aircraft Industry Updates Planes, Parts Makers Bring in Buyers