RADNOR, Pa. - Triumph Group, Inc. (NYSE: NYSE:TGI), an aerospace and defense systems and components manufacturer, has finalized the sale of its Product Support business to aviation services provider AAR CORP. (NYSE: NYSE:AIR). The deal, valued at $725 million, was completed today, with Triumph anticipating net after-tax proceeds of about $700 million. The company plans to use the majority of these funds for debt reduction.
The Product Support division is known for its maintenance, repair, and overhaul (MRO) services for airframes, structures, and engine accessories, catering to both commercial and military markets from five primary locations.
Dan Crowley, chairman, president, and CEO of Triumph, expressed satisfaction with the divestiture, stating that it delivers significant value to the company and its stakeholders. He noted that the transaction marks a step forward in Triumph's deleveraging efforts and positions the Product Support business within a leading MRO company recognized for its customer service.
Post-sale, Triumph will concentrate on its original equipment manufacturer (OEM) component, spares, and IP-based aftermarket business, aiming to grow profitably within the expanding markets it serves. The Systems & Support segment will now focus on three engineered systems components and aftermarket companies, with an emphasis on Actuation Products and Services, Systems Electronics and Controls, and Geared Solutions. Triumph's Interiors segment, combined with these components, will operate across 21 sites with approximately 4,500 employees. Over 60% of the company's offerings will be rooted in Triumph's intellectual property, with 90% being supplied on a sole-sourced basis.
Based in Radnor, Pennsylvania, Triumph provides a wide range of products and services to the global aviation industry, including OEMs and various military and commercial aircraft operators.
The company cautions that statements in the press release that are not historical facts, including expectations about financial and operational performance, are forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections. Triumph's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended March 31, 2023, detail these risks and uncertainties.
This news report is based on a press release statement from Triumph Group.
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