TransDigm Group

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TransDigm Group Incorporated
Public
Traded as NYSETDG
S&P 500 Component
Industry Manufacturing, Aerospace
Predecessor TransDigm Incorporated
Founded 1993
Founder Douglas W. Peacock, Chairman of the Board
Headquarters Cleveland, Ohio, United States
Key people
W. Nicholas Howley, Chief Executive Officer;

Raymond F. Laubenthal, President and Chief Operating Officer;

Gregory Rufus, Chief Financial Officer;

James Riley, Executive Vice President;

Robert S. Henderson, Executive Vice President
Products Aerospace components
Revenue Increase US$ 1.70 billion (2012)
Increase US$ 699.8 million (2012)
Increase US$ 324.9 million (2012)
Total assets Increase US$ 5.46 billion (2012)
Total equity Increase US$ 1.22 billion (2012)
Number of employees
5,400
Divisions
Subsidiaries 15
Website www.transdigm.com
Footnotes / references
[1]

TransDigm Group Incorporated develops, distributes and manufactures commercial and military aerospace components such as mechanical actuators and ignition systems.[2]

History[edit]

Beginnings[edit]

Transdigm Incorporated was established in 1993 by W. Nicholas Howley and Douglas W. Peacock[3] after acquiring Adel Fasteners, Aero Products Component Services, Controlex Corporation and Wiggins Connectors from IMO Industries.[4]

Four years later, in 1997, the company purchased Marathon Power Technologies. [5]

Acquisition of Transdigm Incorporated by Odyssey Investment Partners[edit]

The next year, Transdigm Incorporated was acquired by Odyssey Investment Partners.[6]

Then, during the final two years of the century, the company added to its list of acquisitions with Adams Rite Aerospace and Christie Electric.[5]

In May 2001, Transdigm Incorporated procured Champion Aviation Products, a supplier of igniters, spark plugs and oil filters from Federal-Mogul Corporation for approximately $160 million.[7] It was at this time that Nicholas Howley took over the position of Chief Executive Officer from Douglas Peacock as Peacock transferred into his role as Chairman of the Board.[3]

Formation of Transdigm Group Incorporated[edit]

In 2003, Transdigm Group Incorporated was formed by Warburg Pincus Private Equity VIII to acquire Transdigm Incorporated.[8] This transaction materialized shortly after TransTechnology Corporation sold Norco, Inc. to Marathon Power Technologies.[9]

Then, in 2004, Transdigm Group procured Avionic Instruments of Avenel, New Jersey, a supplier of specialized power conversion devices for aerospace products.[10]

The following year, Transdigm Group purchased Skurka Engineering of Camarillo, California, a manufacturer and distributor of electromagnetic equipment[11] as well as the Fluid Regulators division of Esterline Technologies, who manufactures flight control valves and pressure valves.[12]

In June 2006, the company then procured both Sweeney Engineering and Electra-Motion Industries for a grand total of $27 million, along with CDA InterCorp in October of that year for an additional $45 million.[13][14] Three months later, Aviation Technologies, a producer of avionics and instruments, became a part of the TransDigm family followed by Bruce Industries, a producer of fluorescent aircraft lighting, in August 2007.[15][16] [17]

Inaccurate filings with Department of Defense and "hidden monopoly"[edit]

On January 20, 2017, Citron Research (CR) published a report on TransDigm highlighting its debt-financed acquisitions followed by deep cost cuts and "price gouging".[18] CR published another report on March 9, 2017, accusing TransDigm of illegal activity, noting that twelve of its subsidiaries failed to report their common ownership on federal forms under penalty of perjury. CR pointed out that this omission could be used to defeat federal procurement cost controls.[19]

On March 20, 2017, U.S. Representative Ro Khanna sent a letter to the Department of Defense Inspector General describing reports of "waste, fraud, and abuse" by TransDigm Group and calling for an investigation.[20] He wrote that TransDigm was able to operate as a "hidden monopoly" because its subsidiaries failed to report their common corporate ownership on filings with the Department of Defense (DoD). This omission allowed TransDigm to avoid the requirement that monopoly suppliers to DoD report their costs. The letter also cited several large price increases that occurred after the suppliers had been acquired by TransDigm. For example, a cable assembly increased in price from $1737 to $7863. Rep. Khanna's letter asked the DoD Inspector General to investigate (1) TransDigm price increases borne by DoD and whether performance improvements were behind the increases, (2) how procurement officers would have treated TransDigm differently had their filings been accurate, (3) how to lower short-term costs to DoD of procurement from TransDigm subsidiaries.

Acme Aerospace

References[edit]

  1. ^ "TransDigm Group Incorporated (TDG)". Yahoo! Finance. 
  2. ^ "TransDigm Group Inc" Bloomberg Businessweek
  3. ^ a b "TransDigm TransDigm Announces Chief Executive Officer Transition" Odyssey Investment Partners, Obtained February 18, 2011
  4. ^ "Adel Wiggins" AdelWiggins Group, Obtained February 13, 2011
  5. ^ a b "TransDigm Announces the Acquisition of Aerospace Motor Product Line From Eaton Corporation" PR Newswire Association, Obtained February 18, 2011
  6. ^ "Transdigm Acquired By Warburg Pincus In A Leveraged Buy-Out From Odyssey Investment Partners" Odyssey Investment Partners, Obtained February 13, 2011
  7. ^ "TransDigm, Inc. Completes Acquisition of Champion Aviation Products From Federal Mogul Corporation" Odyssey Investment Partners, Obtained February 14, 2011
  8. ^ "Transdigm Acquired By Warburg Pincus In A Leveraged Buy-Out From Odyssey Investment Partners" Odyssey Investment Partners, Obtained February 18, 2011
  9. ^ "TransTechnology Completes Sale of Norco Inc. Subsidiary" PR Newswire Association, Obtained February 18, 2011
  10. ^ "TransDigm Completes Acquisition of Avionics Instruments" PR Newswire Association, Obtained February 19, 2011
  11. ^ "TransDigm Acquires Skurka Engineering" Defense Daily, Obtained February 23, 2011
  12. ^ "TransDigm Acquires Fluid Regulators Business From Esterline" Defense Daily, Obtained February 24, 2011
  13. ^ "TransDigm goes into the red" Crain Communications, Obtained March 17, 2011
  14. ^ "TransDigm buys components maker in $45M deal" Crain Communications, Obtained May 14, 2011
  15. ^ "TransDigm Buys Aviation Technologies" Aviation Today, Obtained May 17, 2011
  16. ^ "TransDigm Acquisitions" Avionics Magazine, Obtained May 26, 2011
  17. ^ "TransDigm Group Inc Mergers and Acquisitions" Alacra, Inc., Obtained May 14, 2011
  18. ^ "Could TransDigm be the Valeant of the Aerospace Industry?" (PDF). Citron Research. January 20, 2017. Retrieved March 23, 2017. 
  19. ^ "Citron Exposes More Undisclosed Relationships at TransDigm" (PDF). Citron Research. March 9, 2017. Retrieved March 23, 2017. 
  20. ^ — (March 20, 2017). "TransDigm" (PDF) (Letter). Letter to Glenn Fine, Acting Inspector General, U.S. Department of Defense. Retrieved March 23, 2017. 

External links[edit]