Metalmark Capital has reached an agreement to sell its portfolio company Airborne Systems, a designer and manufacturer of parachutes, to TransDigm Group for approximately $250 million in cash. The transaction is expected to close by the end of the first quarter of 2014.
“Airborne’s leading products and technologies have been a valuable part of Metalmark’s portfolio for the past four years,” said Jeff Siegal, Managing Director of Metalmark Capital. “We have thoroughly enjoyed working with Airborne and its outstanding management team and wish them the very best in the future.”
Airborne Systems is a designer and manufacturer of personnel parachutes, cargo aerial delivery systems, emergency escape systems, naval decoys and other related products. Product offerings primarily include current generation troop parachutes, latest generation steerable parachutes for tight drop zone landings, and the ram-air, maneuverable parachute systems used for special operations. Airborne Systems‘ revenues for the fiscal year ended June 30, 2013 were approximately $160 million and roughly 45% of the company’s revenue came from domestic customers and 55% from international customers. Airborne Systems is headquartered in Pennsauken, NJ (www.airborne-sys.com).
“Airborne Systems is the worldwide market and technology leader in military personnel parachutes, guided aerial cargo and payload delivery systems. The company’s wide range of proprietary products, broad international customer base and recurring stream of upgrade and replacement products fit well with the TransDigm value creation model,” said W. Nicholas Howley, Chairman and Chief Executive Officer of TransDigm Group
TransDigm Group (NYSE: TDG) is a designer, producer and supplier of engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and lighting and control technology. The company is headquartered in Cleveland (www.transdigm.com).
Metalmark Capital was established by the principals of Morgan Stanley Capital Partners (MSCP) to manage the Metalmark Capital and MSCP funds. Since 1986, the Metalmark Capital and MSCP funds have invested $7 billion of equity capital in over 100 companies. These companies span a range of industries, including energy and natural resources, industrials and healthcare. Metalmark Capital is currently investing through its latest fund that has $2.5 billion of committed capital. The firm is based in New York (www.metalmarkcapital.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 12-2-13