Arlington Carves Again from Triumph

Publicly traded Triumph Group has agreed to sell its aerospace composites operations to Arlington Capital Partners.

The Triumph composites operations (TCO) – with locations in Milledgeville, Georgia (650,000 sq. ft.) and Rayong, Thailand (135,000 sq. ft.) – provide structural and engine composite fabrications and assemblies to commercial, business jet, and defense platforms including the Boeing 787, 777 and V-22; Airbus A320, A330 and A350; Embraer E-2; Northrop Grumman Global Hawk; and Gulfstream G650/700.

TCO’s products include carbon fiber reinforced polymer (CFRP) and glass fiber reinforced polymer (GFRP) spars, ribs, engine cowls, ailerons, elevators, rudders, spoilers, landing gear doors and access doors. TCO has approximately 600 employees.

Triumph Group (NYSE: TGI) is a Berwyn, Pennsylvania-headquartered designer and manufacturer of aircraft components, systems, and accessories. The company’s sales in 2019 were approximately $2.9 billion.

Since 2016, Triumph has divested 13 businesses (including TCO) as part of an effort to de-lever the company. In April 2019, Arlington Capital formed Radius Aerospace to acquire the forming and fabrication facilities of Triumph. Customers of Arkansas-based Radius include OEM and Tier 1 aerospace and defense companies.

“With the sale of Triumph’s composites business, Triumph continues to execute on its previously announced aerospace structures strategic review. This transaction will further reduce debt and enhance liquidity while moving the company towards its future state as a leading provider of systems and aftermarket service,” said Daniel Crowley, the president and chief executive officer of Triumph. “We are excited to partner with Arlington Capital who will benefit from the experienced workforce, significant capabilities, and embedded customer relationships at both factories.”

Arlington Capital was founded in 1999 and has completed over 90 acquisitions since its inception. Areas of interest include government-regulated industries and adjacent markets including aerospace & defense; government services; and technology, healthcare, and business services. Arlington Capital, based in Chevy Chase, Maryland, is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund that closed in June 2019.

The sale of TCO is expected to close during the second quarter of 2021 and the business will retain its management, technical and support staff, and will continue operations at its current facilities.

Lazard was the financial advisor to Triumph on this transaction.

Private Equity Professional | August 4, 2020

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