US aircraft component manufacturer TransDigm has bought Telair Cargo Group, a subsidiary of US-based MRO AAR, for $725m.
US aircraft component manufacturer TransDigmhas bought Telair Cargo Group, a subsidiary of US-based MRO AAR, for $725m.
The group designs and manufactures baggage and cargo handling systems for widebody and narrowbody aircraft, as well as providing aftermarket support for its products. Telair says it supports more than 50 carriers.
The sale of the group, expected to be complete by May 31 2015, includes Telair International, Telair US and Nordisk Aviation Products.
AAR has also confirmed that it plans to sell its “unprofitable” precision systems manufacturing business and will report a charge of $40m in Q3 2015 as a result.
David Storch, chairman and CEO of AAR, said: “These transactions are an important strategic step positioning AAR as a pure-play, industry-leading global aviation services company and will allow us to focus our attention where we see the best opportunities for the company.
“We also expect the sale will create value for our shareholders by crystalizing our valuation, improving AAR’s overall return profile, and reshaping our balance sheet while returning capital to shareholders.”