TransDigm Acquires Stellant Systems for $960 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: PRnewswire
- Acquisition Agreement: TransDigm Group has announced a definitive agreement to acquire Stellant Systems for approximately $960 million in cash, including certain tax benefits, which is expected to enhance its competitive position in the aerospace and defense markets.
- Market Positioning Advantage: Stellant focuses on the design and manufacture of high-power electronic components, with about 50% of its revenue coming from the aftermarket, and nearly all revenue derived from proprietary products, aligning well with TransDigm's long-term strategic objectives.
- Revenue Expectations: Stellant is projected to generate approximately $300 million in revenue for the year ending December 31, 2025, further solidifying TransDigm's market position in the aerospace sector and supporting future growth.
- Employees and Facilities: Stellant operates manufacturing locations in California, Pennsylvania, New York, and Massachusetts, employing around 950 people, and this acquisition will expand TransDigm's production capacity and technical resources.
Analyst Views on TDG
Wall Street analysts forecast TDG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TDG is 1568 USD with a low forecast of 1370 USD and a high forecast of 1798 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 1316.450
Low
1370
Averages
1568
High
1798
Current: 1316.450
Low
1370
Averages
1568
High
1798
About TDG
TransDigm Group Incorporated, through its wholly owned subsidiaries, is a global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service. Its segments include Power & Control, Airframe and Non-aviation. Its product offerings provided to end-users in the aerospace industry include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
