TGI - Why Aerospace Company Triumph Shares Are Skyrocketing Today | Benzinga
Triumph Group, Inc. (NYSE: TGI) announced today that it has agreed to sell its Product Support business to AAR Corp. (NYSE: AIR) in a transaction valued at $725 million.
The deal value represents a 14.5x trailing 12 months Adjusted EBITDAP multiple as of September 30, 2023.
Triumph anticipates using the majority of the proceeds, estimated at around $700 million after taxes, for debt reduction, aiming to reach a pro forma net leverage of about 4.0x net debt to Adjusted EBITDAP by March 2024.
For AAR, this acquisition, which includes expected tax benefits valued at around $80 million, brings the effective purchase price multiple to ~11.7x FY2024 EBITDA, or 9.9x when factoring in