-TransDigm Group said on Thursday it would buy the components and subsystems business of Communications & Power Industries for about $1.39 billion in cash to deepen its presence in the booming aircraft repair market.
Airlines, grappling with a shortage of planes amid surging demand for air travel, are flying jets for longer, necessitating more repairs and services.Shares rose as much as 7.6% to hit a record high of $965.25 in early trading after the company authorized a special cash dividend of $35 per share and projected an upbeat 2024.
The acquisition, which is expected to close by the end of TransDigm's third quarter of fiscal 2024, will be financed through existing cash, as well as new long-term debt. The company estimated annual sales of $7.48 billion to $7.68 billion, above expectations of $7.40 billion, per LSEG data.
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TransDigm to pay $1.4 billion in cash to buy CPI’s electron device business fromTomi Kilgore is MarketWatch's deputy investing and corporate news editor and is based in New York. You can follow him on Twitter TomiKilgore.
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TransDigm paying $1.4 billion for Electric Device business from TJC portfolio company CPISteve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
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