TransDigm Group to acquire CPI’s electron device business for $1.4bn

TransDigm Group Inc. (NYSE: TDG) has agreed to acquire the Electron Device business from Communications & Power Industries (CPI), facilitated by an affiliate of The Resolute Fund V, L.P., for an impressive sum of approximately $1.385 billion in cash. The deal is an outcome of CPI’s strategic decision to hone in on its core sectors, with the sale expected to enhance CPI’s focus on the satellite communications and medical industries.

CPI’s Electron Device Business: A Legacy of Innovation and Dependability

CPI’s EDB, a segment boasting a 75-year legacy in high-power microwave components, stands out as a leading global supplier with over 75 sole-source platform positions. The segment serves a vast range of high-stake industries, including defense and high-performance industrial sectors. Its significant aftermarket presence ensures a steady flow of recurring revenue, leveraging an extensive portfolio of owned designs.

Statements from CPI and TJC Reflect a Positive Outlook on the Acquisition

Andy Ivers, President and CEO of CPI, anticipates a synergistic future for the Electron Device business under TransDigm’s wing, considering TransDigm’s established market presence and focus on aerospace, defense, and medical industries. Similarly, Erik Fagan, Partner at TJC, expressed pride in the partnership with the EDB team, looking forward to their ongoing growth and technological contributions to their clientele.

Advisory and Legal Teams Behind the Acquisition Deal

The strategic transaction was supported by financial advice from Harris Williams LLC and Goldman Sachs & Co. LLC, with legal counsel from Kirkland & Ellis LLP for TJC and CPI. TransDigm’s advisement came from Evercore and legal guidance from BakerHostetler.