RADNOR, PA — Triumph Group, Inc. (NYSE: TGI) recently completed a transformative divestiture of its Product Support business to AAR CORP. (NYSE: AIR). The deal, valued at a hefty $725 million, is set to bolster Triumph’s balance sheet and accelerate its debt reduction efforts.
The sold-off entity is a recognized leader in the Maintenance, Repair, and Overhaul (MRO) sector, specializing in the upkeep of structures and airframe and engine accessories. Its operations span both commercial and military aftermarkets across five prime locations.
“This transaction delivers immediate and substantial value to Triumph and our stakeholders,” said Dan Crowley, Triumph’s chairman, president, and chief executive officer. “By focusing on our original equipment manufacturer (OEM) component, spares, and intellectual property-based aftermarket business, we expect to profitably grow in the expanding markets we serve.”
The sale will enable Triumph to concentrate its resources on its core capabilities, thereby enhancing its competitive position in the aerospace market. Following the completion of this transaction, Triumph will advance as a value-added, intellectual property-based business focusing on three main segments: Actuation Products and Services, Systems Electronics and Controls, and Geared Solutions.
Triumph’s decision to sell its Product Support business comes as part of a broader industry trend towards specialization, as companies seek to streamline their operations and focus on areas where they can deliver the most value. This strategic move aligns with this trend, allowing Triumph to direct its efforts towards areas where it holds a competitive advantage.
With 21 sites and approximately 4,500 employees, Triumph is poised to make a significant impact in the aerospace market. Over 60% of the company’s offerings will be based on Triumph’s intellectual property, and 90% of its products and services will be supplied on a sole-sourced basis, underscoring the company’s commitment to innovation.
This deal marks a significant milestone for Triumph as it seeks to reposition itself within the aerospace industry. With its strengthened balance sheet, reduced debt, and sharpened focus on its core business segments, Triumph is well-positioned to capitalize on growth opportunities in the expanding markets it serves. Industry watchers keenly await the next chapter in Triumph’s evolution as it navigates this new phase of its business journey.
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