TransDigm, which is based in Cleveland, supplies machinery for aerospace and military defence. The Telair business has several operating units: Telair International (Telair Europe), Nordisk Aviation Products (Nordisk) and AAR Cargo Systems (Telair US). Worldwide, the business employs just over 600 workers in its various locations. The largest unit, Telair Europe, is the market leader in the design, manufacture and support of complete baggage and cargo loading and handling systems for wide- and narrow-body aircraft. The division is headquartered in Miesbach, Germany, and accounts for approximately 60% of the revenues and a higher percentage of the profits. For the fiscal year ending in May, Telair revenues are anticipated to be around US$300m, over 80% of which come from the commercial aerospace market.
Of the deal, W Nicholas Howley, TransDigm's Chairman and Chief Executive Officer, said: "This is another sizeable acquisition opportunity that meets our strategic, operational and value-creation criteria. We are pleased with the opportunity to acquire a business of this size that so closely meets our business model." He went on to say, regarding the profitability of the acquisition: "We anticipate that the revenue run rate will be relatively flat for the first 12 to 18 months due to significant A400M shipments in fiscal year 2015 that will not fully repeat in fiscal year 2016. This should be offset by growth in other areas in fiscal 2016."
