Triumph Group sells composites operations
Source | Triumph Group Inc.
Supplier of aerospace services, structures, systems and support Triumph Group, Inc. (Berwyn, Penn., U..S) announced on August 3 that it has reached a definitive agreement to sell its composites operations to Arlington Capital Partners (Washington D.C., U.S.). Included in the sale are the Triumph Aerospace Structures composites locations in Milledgeville, Ga., U.S. and Rayong, Thailand.
"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," says Daniel Crowley, Triumph Group’s president and chief executive officer. "We are excited to partner with Arlington Capital Partners who will benefit from the experienced workforce, significant capabilities and embedded customer relationships at both factories."
Triumph Group says the operations cover approximately 800,000 square feet of factory space and employ approximately 600 people. The composites business provides structural and engine composite fabrications and assemblies across commercial, business jet and defense platforms. The company notes key programs supported by the sites, including Boeing 787, 777 and V-22, Airbus A320, A330 and A350, Embraer E-2, Northrop Grumman Global Hawk, as well as the Gulfstream G650/700.
Since 2016, Triumph says it has divested 13 non-core businesses, including this announcement, as part of its transformation efforts to de-lever the company, enhance margins and position the company for long-term success.
The transaction is subject to customary closing conditions and is expected to close in Triumph's second quarter of the 2021 fiscal year. Following the close of the transaction, the business will retain its management, technical and supporting staff, and will continue operations at the current facilities.
Asset management company, Lazard, acted as exclusive financial advisor to Triumph on the transaction.
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