TGI - TRIUMPH ANNOUNCES SALE OF PRODUCT SUPPORT BUSINESS TO AAR | Benzinga
TRANSACTION EXPECTED TO MEANINGFULLY STRENGTHEN TRIUMPH'S BALANCE SHEET AND FOCUS COMPANY ON ITS OEM AND IP-BASED AFTERMARKET BUSINESS
RADNOR, Pa., Dec. 21, 2023 /PRNewswire/ -- Triumph Group, Inc. (NYSE:TGI) ("TRIUMPH" or the "Company") announced today that it has entered into a definitive agreement with AAR CORP. (NYSE:AIR) to sell its Product Support business. The transaction is valued at $725 million, representing a 14.5x trailing 12 months Adjusted EBITDAP multiple as of September 30, 2023. The primary intended use of proceeds from the transaction is debt reduction. The net after-tax proceeds are expected to be approximately $700 million, resulting in pro forma net leverage of approximately 4.0x net debt to Adjusted EBITDAP as of March 2024.
The Product Support business is an industry leader in the Maintenance, Repair and Overhaul (MRO) of structures and airframe and engine accessories, servicing both the commercial and military aftermarkets across five primary locations. The business generated revenues of approximately $268 million for the trailing 12 months ended September 30, 2023.
"We are pleased to enter into this transformative agreement which recognizes the strength of our MRO business and delivers immediate and substantial value to TRIUMPH and our stakeholders. This transaction creates a win-win-win arrangement between TRIUMPH, AAR, and our customers by enabling TRIUMPH to greatly accelerate our deleveraging progress while placing our third-party ...