Arlington Capital Partners has agreed to acquire the fabrications business of publicly-traded Triumph Group.
Triumph Fabrications consists of four companies that manufacture, coat, and assemble complex sheet metal components for fixed wing and rotorcraft platforms. In total, the four businesses generated revenues of approximately $150 million during Triumph Group’s last fiscal year which ended in March 2018.
Triumph Fabrications’ products are made from titanium, aluminum, stainless steel and most nickel-based alloys. The company’s capabilities include all forming methods including stretch, hydro, roll, cold expand, bulge, drop hammer, hot form, and super-plastic as well as welding, heat treating and annealing, metal and composite bonding, and specialty protective coatings including Sol-Gel applications.
Triumph Fabrications has more than one million sq. ft. of combined operating facilities in five locations in Fort Worth, TX; Hot Springs, AR; Phoenix, AZ; San Diego, CA; and Shelbyville, IN. Click HERE for the Triumph Fabrications website.
The sale of Triumph Fabrications is part of a transformation plan launched by Triumph Group in May 2016 to de-lever the company and streamline its operations. Since 2016, Triumph has divested 10 non-core businesses, including the sale of Triumph Fabrications.
“Today’s announcement to divest non-core businesses such as Triumph Fabrications advances our strategy to focus on areas of growth and value creation, such as our integrated systems and aftermarket businesses, while reducing our footprint and eliminating excess capacity and fixed costs,” said Dan Crowley, Triumph Group CEO. “Importantly, we believe Arlington Capital Partners will make the necessary investments into the fabrications business to accelerate its growth as a more focused operation.”
Arlington invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology; aerospace and defense; healthcare; and business services and software. Arlington is investing out of its fourth fund which closed in July 2016 with $700 million of capital. The firm is based in Chevy Chase, MD (www.arlingtoncap.com).
Triumph Group (NYSE: TGI) designs, engineers, manufactures, repairs, overhauls, and distributes aerostructures, aircraft components, accessories, and subassemblies. Customers include original equipment manufacturers and military and commercial aircraft operators. The company, with annual revenues of approximately $3.2 billion, is headquartered near Philadelphia in Berwyn, PA (www.triumphgroup.com).
This transaction is expected to close in the next few months. Following the close of the transaction, Triumph Fabrications will retain its management, technical and supporting staff, and will continue operations at its current facilities.
Lazard (www.lazard.com) was the financial advisor to Triumph on the transaction.
© 2019 Private Equity Professional | January 29, 2019
