TranDigm Group Inc. (NYSE: TDG) is buying Data Device Corp. (DDC), a maker of electronic components for aircraft, from Behrman Capital for $1 billion in cash. The buyer is funding the purchase through a combination of cash and debt.
DDC, based in Bohemia, New York, makes electronic components, such as databuses, which help connect internal components of computers, for aircraft, including F-16 fighter jets and other military aircraft.
“DDC has a strong presence across major military aircraft platforms and a growing presence on commercial aircraft,” says TransDigm CEO Nicholas Howley. DDC expects to generate about $200 million in revenue for 2016, with about 75 percent of that coming from the defense market.
TransDigm, headquartered in Cleveland, makes cockpit security systems, aircraft audio systems and ignition systems for military and commercial airplanes. In 2015, TransDigm acquired aerospace assets from private equity-backed Pexco LLC.
Behrman Capital acquired DDC’s parent company, ILC Holdings Inc. in 2003. Under Behrman's ownership, DDC made add-on acquisitions and spun off ILC Dover in 2011. The latter supplies space suits to NASA.
Aerospace continues to remain a busy sector in mid-market M&A. AE Industrial Partners purchased metal parts maker AC&A; Liberty Hall Capital Partners bought turbine parts manufacturer Bromford Industries; and MTS Systems Corp. (Nasdaq: MTSC) agreed to buy sensor producer PCB Group Inc. Latham & Watkins is representing DDC.